I have a $30k target based on the break of the right neckline of the head and shoulders/double top type distribution pattern.
I expect a relief rally at the 200 day MA ($40k); the RSI has also now entered oversold territory.
This relief rally would retest and be rejected by the H&S neckline at approx $48.5k, followed by bearish continuation down to the $30k level.
That would represent a roughly 50% correction from the recent all time highs and I do believe this would be a potential excellent dip-buying opportunity.
The $30k level also overlaps with the 50-week MA and the weekly chart Bollinger Band lower bound envelope.
The alternative scenario to consider would be that this could be a failed H&S breakdown, in which case there would be an earlier than expected high volume reversal to the upside.
I expect a relief rally at the 200 day MA ($40k); the RSI has also now entered oversold territory.
This relief rally would retest and be rejected by the H&S neckline at approx $48.5k, followed by bearish continuation down to the $30k level.
That would represent a roughly 50% correction from the recent all time highs and I do believe this would be a potential excellent dip-buying opportunity.
The $30k level also overlaps with the 50-week MA and the weekly chart Bollinger Band lower bound envelope.
The alternative scenario to consider would be that this could be a failed H&S breakdown, in which case there would be an earlier than expected high volume reversal to the upside.