I would like to share my thoughts on what's happening with BTC/USD over the past days. It's my first time to publish an idea in TradingView so bear with me. Nevertheless, let me know what you guys think!
We broke out of the down (purple line) and attempted to reclaim the past resistance of 11,722. If it had done that and closed above it, that would've given the bulls enough momentum to get to 12,700-13,100. However it failed and not just rolled back to test the down (around 9,500) but actually broke through it with a lot of volume! Last night, it even touched 8,370. I expect a bounce off these levels, as some buyers would come in and also some shorts would start covering. Most likely, it would retest the down again to see if we can get back up (around 9,130). If it is successful, we may possibly see it reach 9,600-10k levels again. And when we see a series of higher highs and higher lows in the price action (in the smaller time frames) and starts increasing as more buyers get in, then hopefully the would continue and we have seen the bottom of the correction. If we incorporate analysis here, then the end of this correction could be classified as wave 2 and ready to resume wave 3 of the 5 wave structure.
Otherwise, we can see the selloff resume. If you guys are fortunate enough to still have some fiat lying around and won't mind taking some nibbles if BTC falls down some more, my best advice would be to take those nibbles at different price levels (put in a limit buy order!). Don't just buy in one zone. Spread it out so you can dollar cost average your way in. It's very hard to know where the bottom is so if your risk tolerance allows you to buy as BTC is selling off, then identify the levels where it can possibly bounce off and buy at each one. But if you're more conservative, then wait out for the dust to settle and once an uptrend (look for higher highs and higher lows) is confirmed, then buy your way up (same principle, still ladder your way in).
If BTC breaches the low of this candle in the daily(8370), then the next levels I see (based on previous support and fibonacci) are 8100, 7129 of course, the previous low of 5873. If it falls below those levels, then the next support is around 5k.