Momentum off the $9,000 low has faded. At the low, there were a few positive divergences on the short term charts, but the bounce has worked those off, and now they are negative again.
Most importantly there is a very clear bearish triangle that has formed. The base of that triangle is worth $3,300, and if you subtract that from where the triangle just broke, the target is at $8,346. Here’s a BTC 15 minute chart showing the triangle:
That figure is the same $8,400 target that the latest H&S target has been. The bounce at $9,000 was odd because that target hadn’t been reached, plus there is little to no support in the $9,000 area.
To blow this pattern up, prices need to exceed $12,000 – Let’s hope so. Triangles have been not doing what is expected lately, so it is possible we get buying that takes us up and out. On the plus side, Binance has reopened their window again, and BTC of late has tended to show strength during U.S. trading hours.
We’ll see what happens, but if that target is fulfilled, it’s about a 30% haircut on the current price of BTC. I would expect another leg lower for most of the Alt space as well, again, should this occur.