This week probably gives off a lot of mixed emotions; some may see it as boring and choppy, while others may see it as fast and exciting, and some are probably just patiently waiting for the breakout. Either way, it doesn’t change the bigger time frame.
The drops we’ve seeing are great for context as they show us the obvious: a lot of selling is going on which has been shifting the momentum from bullish to bearish – reducing the chance of a move above $9000 at the moment significantly.
The blue arrows in the image below identify the drops I’m speaking about:
It’s really important to note here that we’re looking at the 4hour time frame, and that there’s a lot of action happening within those candles.
Some may see a wedge, chop, the right shoulder of a H&S… but they all mean the exact same thing so you don’t have to worry.
If a candle of significant time (30m+) close above the resistance at 8100, then support is gained and we will not be going down anymore.
For more context you can view the trade setup on a live chart through Tradingview:
And here are related analysis following the entire move from the high: