Yesterday I warned that the third wave in BTC looked complete and that we could expect a retracement.

Read: 96% of WSJ economists say that Bitcoin is a bubble. Yeah right.

And it seems that we have started this retracement today. The catalyst for the selling was the bankruptcy from an crypto exchange in Asia. Asian crypto traders got spooked by the sudden collapse from a South Korean based crypto exchange. The exchange got hacked and lost a large amount of its digital-currency reserves...

There is some support arround $ 16,0000 but we could retrace deeper towards $ 14,000. That's why I've placed a green rectangle between the 23.6% and 38.2% fibonacci retracement lines.

Warning

Corrective waves (wave 4) have a lot more variety and are less clearly identifiable compared to impulse waves. Sometimes it can be rather difficult to identify corrective patterns until they are completed.