BTCUSD: Rebound within the sell Channel towards 3,900.

The previous 4H Channel Down not only hit the 3,645.00 target but also aggressively broke to the downside (STOCH = 28.730, Williams = -75.881). We now need to look for direction on a wider time frame and that is 1D which is trading within its own (oversold) Channel Down (RSI = 24.546, Highs/Lows = -336.5438, MACD = -538.400).

A -27.15% candle sequence after its initial Lower High indicates that the next Lower Low was either 3,210 or, if we assume that 4,271 was the previous Lower High, at 3,110. The +26.90% rebound sequence puts the targeted Lower High within 3,880 - 3,945. After that relief rebound, a break out below 3,000 is expected as per our study that projects the bottom of the 2018/ 2019 bear cycle. It is therefore safer to wait and short the High instead of buying this bearish Channel.

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