With today's selloff in cryptos, BTC has broken through the 2 trendlines I've drawn and invalidated both. The top trendline was based off connecting 2 close price points, and BTC clearly closed below the trendline. The lower trendline was also invalidated as it drawn using 2 daily low price points and BTC whipped through marking a low of $8400.
The falling wedge pattern is still in tact, drawn in the yellow dotted lines. BTC is testing the lower bound of the falling wedge, but managed to close above the lower bound. The selloff today was also on elevated volume, which could be cause for concern.
The apex of the falling wedge is right around $7000 which is also coincidentally right at a more conservative trendline support. Interesting enough, the apex is also right around 2/16 which is Chinese New Year, FWIW. Trading patterns are not an exact science and many times price action makes a move before completing the entire pattern.
Max downside risk would be $7000, anything below that, I'd consider the bull run over. Let's see what happens.
Disclaimer: I do not have a position in BTC.
