The price broke down this morning. This breakdown happened when the price fell below $2,260. This is a triple bottom breakdown. This breakdown is demonstrable one of the most negative in these kinds of charts.
You can see on the chart where I drew in the triangle that has been forming over weeks. We broke the bottom border of that triangle this morning.
When predicting price movements on PnF charts there are two primary ways to count the movement. The first is to count the width of the formation. This number is extended beyond the breakdown. This formation is 5 columns wide. So you count down 5 boxes from the breakdown. The first target is therefore, the $2,140 box.
The second way to predict is to overlay the last breakdown over this breakdown. The last breakdown that occurred was 15 boxes long. Overlaying a 15 box drop on this chart, and the price target is in the $2,100 box.
As I’ve been writing over the past few days you can see the price dropping like a zip line along the top border of our triangle.
The trend line is still pretty far away at $1,700. I doubt we will get that low on THIS trip downward. I DO think we could see it in the days before August 1st. There are a lot of stories out there suggesting you sell going into August 1st. As a long term holder, I do not have an opinion one way or the other. I DO think it is always a good idea to get the BTC out of the exchanges and into a private wallet.
That’s it for today. We are probably in a two week period of great shorting.