The bears relentless selling doesn't appear to be abating. Volume remains weak, supports are being broken with ease, but there's yet to be a capitulation. It seems bulls have left the party altogether.
As such, the downside prevails and I'm targeting $4200-4450 as the next destination. We may pause at round-number support at $5,000, but technically the price is irrelevant so I would not bet on it holding. To be fair, the $6,000 level may remain significant, as markets overshoot and undershoot all the time. For that to be true, we need to see the coin regain that level within a week or two, and more importantly, to hold it.
I want to be bullish, but I see nothing to support that thesis at the moment. Stay away until the tape suggests otherwise unless you like catching falling knives!
As such, the downside prevails and I'm targeting $4200-4450 as the next destination. We may pause at round-number support at $5,000, but technically the price is irrelevant so I would not bet on it holding. To be fair, the $6,000 level may remain significant, as markets overshoot and undershoot all the time. For that to be true, we need to see the coin regain that level within a week or two, and more importantly, to hold it.
I want to be bullish, but I see nothing to support that thesis at the moment. Stay away until the tape suggests otherwise unless you like catching falling knives!
Comment:
We finally broke above the falling trend line resistance, whereupon the coin faltered and is right back to the 6,000 level. On the bright side, that falling trend seems to be acting as support now, so should that hold, I think our bottom may be in. Long with stops below the recent lows of 5,755.