I think there are 3 possible scenarios in bitcoin 0.24% right now.
1- Healthy bearish dump (yellow): If this is a healthy dump, we should expect to revisit $5.8k resistance as next move and after that continue to move downward. This scenario will result in months of consolidation below $6k.
2- Unhealthy bearish dump (red). If we continue to move downward without testing $5.8k, I think it will be an unhealthy bearish dump and consolidation below $6k will not take as long as 1st scenario. We will dump hard and fast, so the come back will be hard and fast as well.
3- Bullish spring (green). If this is a bullish spring to shake out weak hands and create liquidity, then first we will visit $5K area (maybe a little lower up to $4.5k) and then pump and get through $5.8k resistance at first attempt, rekting resistance shorters.
In all scenarios, getting above $6k will initiate next bull run.
1- Healthy bearish dump (yellow): If this is a healthy dump, we should expect to revisit $5.8k resistance as next move and after that continue to move downward. This scenario will result in months of consolidation below $6k.
2- Unhealthy bearish dump (red). If we continue to move downward without testing $5.8k, I think it will be an unhealthy bearish dump and consolidation below $6k will not take as long as 1st scenario. We will dump hard and fast, so the come back will be hard and fast as well.
3- Bullish spring (green). If this is a bullish spring to shake out weak hands and create liquidity, then first we will visit $5K area (maybe a little lower up to $4.5k) and then pump and get through $5.8k resistance at first attempt, rekting resistance shorters.
In all scenarios, getting above $6k will initiate next bull run.
Comment:
First scenario (yellow) invalidated and it was the worst scenario. Now we wait for the reaction at $5k area.
Trade closed: stop reached:
No bounce, more pain. Bears are serious. They can bring down the price wherever they want. Stay away from trading until dust settles.