On the daily chart we are still making lower highs (LH) and lower lows (LL), meaning we are still in a down trend. The first test of this bottom are the sellers at $8000. Price could react, then make its way to $6000 or the buyers could take out this level. If order for me to be convinced that we hit a bottom, I need to see the buyers take out the sellers at $8500 as well...this is my rule of 2....price taking out $8000 we have a trend violation, price taking out the sellers at $8500, we have a trend violation as indicated by the orange arrows.
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On the daily chart we are still making lower highs (LH) and lower lows (LL), meaning we are still in a down trend. The first test of this bottom are the sellers at $8000. Price could react, then make its way to $6000 or the buyers could take out this level. If order for me to be convinced that we hit a bottom, I need to see the buyers take out the sellers at $8500 as well...this is my rule of 2....price taking out $8000 we have a trend violation, price taking out the sellers at $8500, we have a trend violation as indicated by the orange arrows.
Appreciate your question, did this analysis help??
I like those up arrows!