There should be a move up to the $6k resistance at 0.618 fib which has been a behemouth all year. The question is, does this act as the strong resistance which the herd is expecting or is this a terminal shakeout taking place instead which occurs at the end of a period of accumulation and is intended to shakeout weak hands before a powerful move up? Could this not be the case considering we have been trading within a tight range for a couple months now.
Don't fall prey to smart money and short at these levels unless the $6k behemouth is too strong as resistance and unless we don't have the behind the move in which case we can expect a drop back to $5500 or potentially $5k. Even if price breaks above $6k, we still need a close above $6250 at 0.718 fib, which has been significant these past couple months, in order for there to be a sustained move back to the $6500 iron curtain and hopefully a close above it.
Good luck and happy trading!
For the short term, price can definitely move lower, however it will have strong support at the bottom of the wedge around $5k followed by the strong $4740 horizontal monthly support just below that so I see a drop to $5k or potentially $4740 in the short term. A break below this is going to be my confirmation of an extended bear market so I'll be trying to block out as much of the short term noise as possible until then.