Firstly, Bitcoin is forming a falling wedge pattern. Which is considered bullish as the volatility is being coiled and is often explosive on breakouts. As you can see on the chart above, the 61.80% fib retracement is near 8826 and it needs to be taken out for a confirmation of the breakout. I would also like to point out that the previous significant high is near the 61.80% fib at 8686. Once we get a closing above that we would change from a LL-LH formation to a HH-HL formation.
Currently, Bitcoin is near support zone. If a candle closes below 8094 on the 4 hourly charts then this will indicate further weakness and can drag the prices below till 7830 and 7440 respectively.
Bottomline Trade: Entry will only be triggered if we get a candle closing above 8686 on 4 hourly charts, stoploss would be kept near the 7800 mark and the first target would be near 9500. I will create another post once either the entry is triggred or markets continue to drag down and show further weakness.
This is my first post guys and I would appreciate your kind feedback.