Bitcoin is currently quoted around 89000. Back in mid-November, we mentioned looking at the chart; Bitcoin has experienced over 400 days of upward trend, and has finally broken below the trend line. We declare the bull market is over.
Looking at this wave of rebound to 98000, we also clearly reminded to exit at 98000_10000, being cautious of a tailing market. Indeed, Bitcoin at the 98000 position, as shown in the chart, is constrained by the double trend lines and the Fibonacci 0.382 position, quickly falling back.
Now looking at this week's weekly chart, the naked candlestick has formed a bearish engulfing pattern, so if tomorrow's closing remains unchanged, be cautious of further declines next week.
Currently on the daily chart, the price of Bitcoin is near the lower boundary of the yellow parallel zone. If it breaks below, it will go directly to the previous low around 80000, or there may be a small rebound to the yellow trend line before continuing to drop.
In summary, it is recommended to focus on short positions.
