I foresee Bitcoin getting drawn to 5k like a magnet. Where i do predict a bounce that can hopefully be the start of the bullmarket, my reasons for the bounce are listed below.
At $5000 there lies 4 major supports.
The horizontal support line at the $5000 region.
The which does back from March 2017 connects at the $5000 region with the next few weeks.
The 0.786 fib retracement level lies just on $5000, in this crypto bear market I have noticed fib 0.786 has been more reliable than 0.618 for bounces, and a lot of big traders will be looking at this .
The psychological number that is 5000, expect people to see this number and have buys placed there.
On top of that we have the ruling on the 10th of August(more or less). If the news is positive i do NOT foresee us hitting 5k in the near future, the sentiment will be too . But if the date is delayed, or negative, i believe this setup will play out to test at least a $5000 bottom.
If the is then approved it will be amazing news for the cryptocurrency market and i see much growth coming, if is rejected again, the gains and will dry up and we likely we will explore new local lows and $3/5k supports.