As I mentioned yesterday, we have now confirmed a very BEARISH engulfing candle close on the weekly.
This most recent candle, which closed a few hours ago below $63k, has officially erased the entire rally that started 5 weeks ago.
This is a sign that the weakness over the past week has been strong enough to quite literally erase an entire 5 week rally in just 7 days.
This is also a strong macro indicator that a continuation move in the same direction is very likely to follow in the coming weeks.
These types of structural shifts and breakdowns in the market are by far one of my favourite ways to understand the next most likely directional move on the HTF charts.
This week could get quite volatile if we do see continued downside, so keep that in mind throughout the week!
