Possible outcomes for the next few days (perhaps 1-2 weeks)
- Retest the $9500 resistance area
- If we get enough momentum, we could break resistance. Next resistance would be around $10,000-$11,000
- But I wouldn't be surprised to see some sellers stepping in at resistance for some profit taking, and we could see a drop to retest the ~$8000 support area
- If support holds, this could be a good dip buy area, and we could go up to test again and possibly break resitance
- If support breaks, we could see a dip pull back to prior low around $6000
Always have a plan and be prepared for different scenarios.
We're in a confirmed Bear trend, and one should be very careful with position sizing and risk management.
- Retest the $9500 resistance area
- If we get enough momentum, we could break resistance. Next resistance would be around $10,000-$11,000
- But I wouldn't be surprised to see some sellers stepping in at resistance for some profit taking, and we could see a drop to retest the ~$8000 support area
- If support holds, this could be a good dip buy area, and we could go up to test again and possibly break resitance
- If support breaks, we could see a dip pull back to prior low around $6000
Always have a plan and be prepared for different scenarios.
We're in a confirmed Bear trend, and one should be very careful with position sizing and risk management.
Comment:
Couple of scenarios that we could see here
1. Support holds, we create a Adam & Eve Double Bottom, and break out of the descending triangle
2. We have a final wash out / capitulation candle to $4500-$5000 area, before bounce