Stop loss at $6500
Profit Target: $4500
Expected time window to target: 49-90 days from confirmed breakdown
Risk Ratio: 7.14
Breakdown point: $4100
Expect pullback after initial breakdown. Target price is above expected bottom.
In the 2013 bubble run bitcoin went up above 1k. The bottom was found later around the .786 fib retracement level. I am a strong advocate for using Fibonacci Levels in crypto trading.
Based on the last bull run that started in 2015 and ended around 20k. The Fib lev @.786 would put the target bottom for bitcoin to 4374. Remember this is crypto, price levels overreact, I would not be surprised to see the price go under 4k for a couple of days.
Future prediction after target reached:
Breakdowns from a descending triangles typically have a 55% bounce back after hitting target bottom. So longing from the $4500 target would put the profit target at $6975. Keep eye on market sentiment and wait for clear bottom and movement up.