Did today’s decline in BTC cause chart damage?

Bitcoin futures on the CME are currently trading down $580 or 5.8% at $9,355 as of 3:00 PM EST. So did today’s move cause any major chart damage? The short answer is no. The reasons I am saying such is as follows. 

First and foremost is the fact that BTC is still trading above the Fibonacci harmonic at approximately $9,200, if it breaks this level we would have to change our bullish position. Secondly today’s decline was not accompanied by a spike in volume which would be necessary to show a true pivot. 

However as you can see on our first chart we have drawn blue and red descending trend lines from the high hit on May 8th. We drew these lines in a few days ago as I noticed the highs and lows eloquently fitting into this channel. If we do get a pivot to the downside I think this channel would be highly likely contained within these two trend lines.

Let us not forget about the golden cross between the 50 and 200-day moving averages that just happened yesterday. This is only the second occurrence of this in BTC’s entire trading history and the other time occurred on May 17th of 2019 and what followed immediately was a big drop the same day from roughly $8,500 down to around $6,300 before recovering on the day and closing at $7,200. After that first day decline however the golden cross was then follow2ed by a climb of approximately $7,000 within the following six weeks hitting the all-time high for 2019.

Everything is looking like a true rally in BTC is lining up and we should see as new yearly high in the coming months.