It’s been a week of decidedly bearish action, with BTC breaking below two structural supports; one a short-term channel, the other was a line of support that had held since January.

Currently we see BTC flirting with support at $37.5k, however, another close below $38k confirms the break of the longer-term parallel channel and Bitcoin will be seeking out lower levels of support.

Three levels present as Fibonacci targets but only two as potential pivot-lows:

• $34.7k as the 0.5 projection of W-wave, coinciding with prior support;
• $31.6k as the 0.618 projection of the W-wave and a new bear-market low; and
• $28.3k to $27.1k as the zone for 0.786 for the W-wave, another new bear-market low, coinciding with the 0.618 retracement of the prior bull-run to $69k.

How will this play out? Will we see more down-side action into a capitulation event to reach these levels? What do you think will happen next?