In the event that price breaks down below the 8000-8500 level, we should talk about what scenario is likely to play out.
I believe it is unlikely we break even below 8k, we seem to be bouncing on the 20 and 50 week MA. Also, there is a long term trend line across the bottom of the last last bear market that crosses around the 8000-8500 level.
If we break below the 8000 level and remain there for a few days, it's likely we will retest 6000-6500. There is a major support level at 6k since before the previous price broke down back in 2018 and the more recent 2019 bottom.
If this happens, we could see a double bottom of RSI and a major period of undervaluation of the crypto market relative to the log regression trendline that is hovering around the web.
I believe it is unlikely we break even below 8k, we seem to be bouncing on the 20 and 50 week MA. Also, there is a long term trend line across the bottom of the last last bear market that crosses around the 8000-8500 level.
If we break below the 8000 level and remain there for a few days, it's likely we will retest 6000-6500. There is a major support level at 6k since before the previous price broke down back in 2018 and the more recent 2019 bottom.
If this happens, we could see a double bottom of RSI and a major period of undervaluation of the crypto market relative to the log regression trendline that is hovering around the web.
