Bitcoin (BTCUSD) Breaks Below 4000, Testing Month Plus Upchannel Support
Bitcoin (BTC/USD) Weekly/Daily
Bitcoin (BTCUSD) appears to be ending its month long rally from just below the 2k level, as it threatens to break an upchannel support (on the weekly and daily charts). Significantly, BTCUSD is forming a red weekly candle with its trading range thus far below last week's Doji body. If BTCUSD breaches the weekly/daily chart upchannel support today, the current weekly red candle will likely continue lengthening potentially forming an Island Reversal pattern consisting of the last 2 weekly candles (and the current). Significantly, the all-time peak last week coincides with the 2.618 Fib extension that could have been drawn based on the May to July sideways channel low and high. With the daily RSI and Stochastics turning down from overbought levels, and the daily MACD negatively crossing, a decent chance exists for the daily/weekly chart upchannel support to be breached today. An upchannel support break would accelerate profittaking resulting in the weekly MACD blue line quickly flattening and turning down perhaps by late week.
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