It's clear BTC is in a bear market right now. As long as BTC stays under the upper decending trendline, the outlook is bearish (notice chart on log scale).
The big question is, where will be the bottom?
2 obvious strong supports below the previous dip to $6000-ish would be the $5000 level, and if it breaks then down to the $3000 level.
I believe that if the $6000 low breaks, BTC will drop much further than anyone dares to believe. Because the $5000 is psycologically a strong level, I expect some bounces off of it, until it cracks down.
The whales will try to get even the strong holders to panic sell, and will start buying much cheaper. Notice that this may take another 3 or 4 months to reach $3000.
Indeed there may even be a possibility of price going lower that $3000, however I believe that fundamentally BTC would be way too cheap. Since mining a single BTC costs about $8000 currently on average, miners might be off cheaper to simply just buy BTC rather than mining them.
If the $3000 level holds, the bounce will be very strong, specially when a strong panic sell is triggered. The whales will start buying everything they can get their hands on at those levels, pushing price back up quickly to the $5000 level. Then once the decending trendline is broken, bullish investers will enter the market again pushing price higher quickly. Indeed possibly pushing price back up to all time highs at the end of the year.
The big question is, where will be the bottom?
2 obvious strong supports below the previous dip to $6000-ish would be the $5000 level, and if it breaks then down to the $3000 level.
I believe that if the $6000 low breaks, BTC will drop much further than anyone dares to believe. Because the $5000 is psycologically a strong level, I expect some bounces off of it, until it cracks down.
The whales will try to get even the strong holders to panic sell, and will start buying much cheaper. Notice that this may take another 3 or 4 months to reach $3000.
Indeed there may even be a possibility of price going lower that $3000, however I believe that fundamentally BTC would be way too cheap. Since mining a single BTC costs about $8000 currently on average, miners might be off cheaper to simply just buy BTC rather than mining them.
If the $3000 level holds, the bounce will be very strong, specially when a strong panic sell is triggered. The whales will start buying everything they can get their hands on at those levels, pushing price back up quickly to the $5000 level. Then once the decending trendline is broken, bullish investers will enter the market again pushing price higher quickly. Indeed possibly pushing price back up to all time highs at the end of the year.