Momentum is now and even though price is in the vicinity of support levels, it is reasonable to expect this sell off to continue until it proves otherwise. In order to do that, it needs to form a clear reversal candle such as a , , , etc. And further evaluation such as reward/risk can be figured out at that point, but for now, we are steering clear of any new long swing trades until this market can prove stability.
Overall our perspective at S.C. is and the current retrace is normal and healthy. If this short term weakness continues, price can reasonably revisit the 7700's or even lower before showing signs of reversal. This is not a prediction, just a possibility that can materialize if this momentum does not change soon. Information like this is what helps to minimize premature entry while the market continues to sell.
Currently, the next minor resistance that can serve as a target once stability returns is the 9359 to 9633 zone (.618 of current swing). This zone will adjust lower if this market continues to push lows.
In summary, now that price is interacting with predetermined levels like the 8350 reversal zone boundary (relative to the 8650 low) it is time to pay close attention to the formations that materialize here. And since momentum is clearly , it is a good idea to be more selective as far as what to accept as a reversal worth entering. At the moment, there is nothing to do except watch and wait. If an appropriate setup appears, risk can then be measured and possibly a swing trade triggered. Keep an eye out for updates on S.C. because that is where trade signal details will appear.
Questions and comments welcome.
The careless behavior of this man has caused a great deal of harm to the market. Unfortunately, he still has more than 100k BTC to dump. So we should expect more trouble to come.