In looking at , we are approaching low levels seen with some of the previous drops. If we use these levels to examine the conditions preceding the drops and the low levels/reversals, it appears we may be setting up for a similar drop . If these patterns repeat, it appears BTC may not reverse substantially until around 6500-7000. This would align very well with the trends at both the start and completion of the drops as well as the . It also aligns with the durations over which similar drops have occurred.
Can BTC really go that low? Based on recent history, I don't see why not. Many potential buyers are waiting on the sidelines at this point, citing too much unpredictability. I have seen many hypotheses as to why there are certain drops, but little more than correlation. I for one am watching and trying to gauge when I am comfortable reentering for upward movement. I have read many others are doing the same.
Trade with caution, this is not advice, just an attempt to gauge both market sentiment and evidence from recent trends/indicators. If it does approach 7000, it seems like there is a high probability of a short or long term reversal.