Hope you all were safe during the dumpage.
Let me try to explain what happened here on the daily time frame.
Check out the red level and later the green daily support block and try to notice what happens each time the price goes down to it.
When we have repetitive pounding on an important support, but the price makes a lower high each time, it signal that the buyers are getting exhausted(smaller bounces), so eventually there are simply not enough buyers left and the price simply smashes through.
This is a fairly common occurrence on any time frame, and can happen in both directions. Have a look for yourself, try to find a support or resistance level that got smashed. You'll notice that in a lot of cases this "pattern" played out before the smashing.
Now, where are we headed?
I know there are a lot of perma bulls out there, me included, but from a purely technical standpoint, it would make sense that we should come back to our broken support level and retest it as resistance, then head for the next support level that I can see around 4970 level. After that, who knows, we might get a big enough bounce to kickstart the next bull run.
So I guess we'll have to wait for that ;)
Let me try to explain what happened here on the daily time frame.
Check out the red level and later the green daily support block and try to notice what happens each time the price goes down to it.
When we have repetitive pounding on an important support, but the price makes a lower high each time, it signal that the buyers are getting exhausted(smaller bounces), so eventually there are simply not enough buyers left and the price simply smashes through.
This is a fairly common occurrence on any time frame, and can happen in both directions. Have a look for yourself, try to find a support or resistance level that got smashed. You'll notice that in a lot of cases this "pattern" played out before the smashing.
Now, where are we headed?
I know there are a lot of perma bulls out there, me included, but from a purely technical standpoint, it would make sense that we should come back to our broken support level and retest it as resistance, then head for the next support level that I can see around 4970 level. After that, who knows, we might get a big enough bounce to kickstart the next bull run.
So I guess we'll have to wait for that ;)