I see that it rallied upward, then ran out of steam due to people becoming scared to buy (in a bearish
market this behavior is common, it contributes to very oversold markets). Yet at the same time, people weren't eagerly selling, it could have broken out downward a lot earlier if the market was more bearish
. Also it appears to have been broken by single large seller (thousand coin sell (it doesn't matter much what caused it)). When it did break downward, it did in a sudden waterfall style, which is common before a bullish trend
reversal or continuation. What this means is people suddenly panicked because it broke a support that held for a long time, or they sold because it looked like it was about to break (it eventually breaking was almost inevitable). What happened after that is more important. It managed to retrace 100% of the fall in one move (uncommon, especially in a bearish
market). I'm not certain myself if this is indeed the beginning of a bullish trend
, but I think it's a significant possibility at this point. Higher lows, higher highs.