As most already know we've been trading in this channel for quite some time. If we go back to my previous analysis towards the end of May, the pattern so far has played out as I suspected. It would be interesting to see if we can reverse back to the upside after testing the top of the descending channel as indicated on the chart. If the downtrend momentum takes us back below the high of the channel with volume staying at these levels, the probability of breaking support and dipping below 30K becomes more realistic. In general, such moves result in a fairly quick reversal to the upside, as I suspect many are still on the sidelines looking to enter at a lower price point. Thoughts?
The bears/whales are looking pretty burnt out according to the charts but you're right! If we break the support between 37K and 38K I wouldn't be surprised if we drop back to 30K for a brief moment.