BTC futures are trading within an asymmetrical triangle, this pattern is relevant now and could continue to define price action until the current correction concludes. The left side of the triangle is drawn by connecting the high of December 11, 2022, the all-time high on January 8, 2021.
BTC has been on the decline for the past two weeks after hitting a new record high of $42,700 on the CME’s most active futures on January 8th. Today the selling pressure continued currently trading $1,815 lower at $34,780 nearly a 5% decline for the day.
With the volatile week coming to a close BTC has seen a weekly price range only dwarfed only by last week’s $15,000 trading range. The major difference of course is this week’s large-bodied candle is red signaling a decline for the week. It seems as though BTC is indeed at a tipping point and is entering a corrective period that will intensify should BTC not hold above $30,000.
Instead of going over the current wave count, I find it more relevant and noteworthy to cover a few Fibonacci harmonics in BTC which may very well mark the end of the current rally, and if a correction is to follow where that correction could take us to.
With 2020 finally over a lot of things are pointing to the possibility that BTC’s rally is also coming to a wrap. The majority of the technical studies that are predicting the end of this rally or at least this leg of it come from Fibonacci extensions and wave theory.
