Price went as low as 405 which looked ugly, but the key is how the candle closes. This candle that established the low closed strong, and it this materialized off of the 423 reversal zone boundary. A sign to say the least.
I have been writing on S.C., that these markets are bottoming, but it takes time and a lot of patience. The structure and location have been weighing probability on the side of strength, even in the face of the recent price action.
The current low of 405 is not dramatically lower than the recent 450 swing low. Along with that, all of this price action is still occurring well above the 374 historical low. This sums up to a broad higher low formation and BTC is doing the same thing basically.
If these markets rally, a short term expectation is at least the 490s for this market. That is a conservative view since the short term structures are still intact and must be considered until they are taken out.
In summary, broader structure and location are panting a picture of reward/risk that is skewed toward the side across these markets. The structures that are still in play suggest conservative expectations would be most appropriate for size, target and stop.
Remember that market bottoms are a process and take time to develop. In that process lows can be tested and retested before any meaningful progress on the long side unfolds. Any new swing trade long ideas that we take on S.C., will be shared with our followers.
I wish you the best possible decision in trading,
and lots of fun.