Bitcoin's Short Term Uptrend Breached
The short term uptrend which has been acting as support for Bitcoin has now been breached, as well as 2 Fibonacci levels:
You may also notice a new addition to my chart here, an Elliott Wave count. Im still studying EW theory, but there appears to be a clear 5 wave pattern that has formed on the recent rally.
This means we should now be seeing an "ABC" correction taking place.
What Does That Mean?
What that means is we should see a move lower (Or "A", which we're doing now) followed by a bounce up (B), and then another pullback lower (C).
50% Correction
The 50% retracement level provided a short term bounce and is holding (for now?). This was also due to the fact that the RSI went oversold momentarily as we can see here:
The MACD is also still bearish:
How Things Change
NOTE: I started writing this post about an hour ago and got called away, so the above charts are already looking different right now. So, before posting this, I'll update further...
Update!
A third Fib level has now also been breached as Bitcoin continues to fall:
The retracement is now over 50% and is around 60%.
Important Level
$11000 is now the most important level. If that gets breached, then the rising support line will be the next major area to be tested. At the moment it appears to be safe.
I was not expecting the correction to move as fast as it has.