Blue lines- wedge pattern broken
Red lines- Fibonacci extension targets
Bitcoin is trading around $23,000. Recently price broke our and below a wedge pattern confirming our warnings that a pull back is imminent. Price has so far made a lower high and if we see price break below $22,522 low, then we should expect further weakness in price. Bitcoin remains vulnerable to the downside. In the near term we have our first reversal signal. A break below $22,500 will increase chances of a move lower towards our next downside target at the 100% Fibonacci extension at $21,850. Taking into consideration the possibility that the entire upward move might be over, Bitcoin could decline at least towards $21,800 but more likely towards $20,000 and why not lower. Upside potential we believe is limited to a move towards $25,000.
