Red lines- trading range (broken)
Bitcoin has broken below the $18,500 support and has exited the trading range it was in since June of 2022. Bitcoin is trading just above the $16,000 price level and as expected by our analysis, volatility has increased with a break down. Next downside target remains at $12,000. This new bearish signal will be invalidated if and when price pushes above $21,500. Until then bears remain in full control of the trend. Despite making a new lower low in the Daily chart, the RSI has not provided a new lower low. The RSI provided a new bullish divergence signal. This is not a reversal signal. Just a warning to bears to be cautious and not overoptimistic.
