“As long as we stay above the red area, everything seems under the bullish control. The price breaking the red area and aiming lower will be signal to open a short position. „
Buyers failed to hold above the red line. Broken resistance was not successfully tested as a support so one of the major principles of the price action did not take place. Well. If not this one, there was another one: false breakout (yellow rectangle). Usually it promotes a movement in the opposite direction and it was not different here. The price declined from 1600 USD to slightly below 700 USD.