Trend lines can be twisted and shifted around subjectively, but I always try to keep two trend lines parallel to each other. Two days ago Bitcoin rallied but soon resumed its downward trend. Bitcoin is only $600 away from that $6000 price level and I see no reason why this important $6000 price will get retraced. If the 5 waves I’m counting out is close to being real, then a new Bitcoin record low will have little problem in being achieved.
This may still take well into next week when Bitcoin is in another downside breakout position. I wish I could paint a bullish picture, but this declining pattern shows we are in a bearish phase that could still last years. Bear markets can take Fibonacci years to play out so a 3 or 4 month correction is just a small blip on the radar screens. There are very few players in these futures contracts and not a single commercial trader has taken any positions at all.
Bitcoin investors are lucky in that any volatility is usually subdued when compared to the rest of the commodities universe, like oil or gold. So far the trend is still down, with no real end in sight.