Market breaks up and pulls back in waves, you get an impulsive and corrective wave. The market is currently being manipulated and it's also very confused with the Bitfinex arbitrage. People are also forced to withdraw their funds into other exchanges forcing them to purchase the hard coins and transfer them out, eventually, it will come time to sell those coins and the market will then be forced to sell off.
Tether issue is bigger then the Mt.Gox situation, and there are still whales that have not bought in. I anticipate the market to flatten out have a corrective wave then catch early pull back buyers somewhere between the previous break out of $4,000 (Bitfinex) This will be a good purchasing point as 4K is now going to have a nice amount of people wanting to buy and ride the next wave up, and we very well may retest the $6K break down area, or very close to it $5500-5750 etc... People will once again start to hedge positions and go short because everyone will be hesitant to buy, and the second will be tested if this area gets broken to the downside we can easily anticipate a correction to the lower support and potentially a test of the bottom $3,000 these will be very good prices to purchase but only on the way up.
This is something we don't know yet, I'll be sure to chart more when whe get to those intersections.
Lets be realistic the only people buying these levels are retail morons and fomoers. These are the same people that purchased Bitcoin all the way down from $20K -> Hopefully they are just buying and hodling and not trying to trade because thats an easy way to lose all of your coins.
By the way let this be a lesson, I strongly suggest to avoid trading, You can't go wrong if you just buy lots at different price action, once you trade you subject your coins to risk, Why bother? Its not like the profits from these trades will make you rich... Just back stop trying to be smart and accumilate all of the prices that are at the lows, or when everyone is panicking and the market is in fear. And just wait it out, ususally a cycle takes between 2-4 months.
Its not a sprint , its a marathon ...
This is not financial advice, trading advice, buying or selling advice, This is a friendly reminder from your buddy TheCryptAlpha :)
Best of luck traders!