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Bitcoin in a Bearish Breakout with Continuing Signs of Downside Risk

Bit coin fell sharply, with strong volume, during the 8/13 session from about 571 to about 525. This broke below a triangle support around 555 as well as a spike low from June 15 at 538. This break opens up the 440 area, which is around the middle of the late April-mid-May consolidation. The low there is around 420. A break below 420, then should open up the 2014-low around 358.

(bitcoin Daily Chart 8/14)
The 1H chart shows that at the end of the 8/13 session, price started to consolidate above 525, but has held below 555. Then as the 8/14 session started, we got a bearish engulfing 8PM ET hour candle. This candle engulfed the previous 5 hourly candles, signaling a bearish continuation, at least to test the 525 low. 


(bitcoin 1H Chart 8/14)

At this point a break above 555 would be a required 1st step to introduce the bullish correction scenario, but a bullish outlook at this point should be limited to the very short-term within the context of a bearish market in the medium term. 

However, a break above 580 might open up a bullish scenario, or at least shelve the bearish one. The bullish outlook would be limited to the triangle resistance seen in the daily chart. A break above the triangle resistance then can liberate bitcoin from bearish and consolidation modes towards a short to medium term bullish outlook, with upside toward the triangle high around 680.