The week has started in the red for the majority of crypto assets. Bitcoin closed the week with its largest red candle since December 2018 and analysts are predicting further losses ahead as the correction continues. From an intraday high of $7,950, Bitcoin has tumbled back below $7,600 as the Asian trading session gets under way this Monday morning. A slight recovery has taken BTC back to $7,680 but it is still down 3 percent on the day.

Bitcoin Drops 10 Percent on The Week

The weekly view has also shown a steady decline from $8,600 this time last Monday to current levels. This is a ten percent drop in the week and the largest red candle closed since the big dump in December last year.

Trader ‘CryptoFibonacci’ has noticed the candle predicting further declines for BTC;

“Hate to keep harping on it, but this is important. That candle pattern is a reversal pattern and must be respected,” before adding in a later tweet after it closed … “$BTC Weekly chart update. Do NOT like this candle pattern at ALL!! But, it is necessary after such a huge runup. Retraces coming. Stay safe!!”

Weekly chart update. Do NOT like this candle pattern at ALL!! But, it is necessary after such a huge runup. Retraces coming. Stay safe!! — CryptoFibonacci (@CryptoFib)

Many have eyed the $6,800 level for the next move as this is where the Fibonacci levels line up and moving average sits. For the daily picture the $7,400 appears to be the next support zone in what appears to be the ‘right shoulder’ of the chart pattern;

“Heading, no pun intended, into the right shoulder of the Head and Shoulders pattern should happen soon. After that, all bets are off. Could still take a week or so to develop. Expecting choppy higher prices this week. Proceed with caution.”

Daily Chart. Heading, no pun intended, into the right shoulder of the Head and Shoulders pattern should happen soon. After that, all bets are off. Could still take a week or so to develop. Expecting choppy higher prices this week. Proceed with caution. — CryptoFibonacci (@CryptoFib)

Parabolic Trend Line Broken

Other traders such as ‘Crypto₿irb’ have echoed the sentiment with their analysis showing that Bitcoin has now broken below the medium term parabolic trend line. The daily chart is looking increasingly weaker as Bitcoin failed to retest $8,000. This has been a key level for the bulls and failure to close above it has inevitably led to further downsides.

the only short invalidation is HH above 9.2k or bullish weekly momentum cross; anything below is bearish for MTF (5.2-5.6k)
scaled out earlier, booked decent profits from scalping sessions in Nest
too many redflags to keep good money on table
will scale in if signaled

— Adrian Zduńczyk, CMT (@crypto_birb)

For the best part of last week Bitcoin remained consolidating around $7,800 with several dips down to support at $7,450. It is now going through another one of those dips trading at the lower end of that range. As a result, total crypto has also declined by $10 billion or so over the past 24 hours. As usual, Bitcoin’s retreat will cause major pain for the majority of the altcoins which are currently going deeper into the red.

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