We are just seeing the next leg down on another bear break. Bulls were barely showing up to play an oversold bounce and now bears are back in control pushing prices towards the $7,400 support.
Bear volume isn't even super high right now, so that shows how defenseless the bulls are right now. As such, we probably have a little while of downside left. I think a lot of the lower supports will be tested.
The first target is the $7,400 as mentioned. From there, we're eyeing the $6,800 and then ultimately the $5k psychological.
A look at the weekly chart shows how this pullback was predictable. We saw the volume climax come in two weeks before hitting the price high. Additionally, the weekly closed with a spinning top doji.
RSI for the weekly was at 80 (and higher during the price highs), which we haven't seen since the ATH. Nothing else is driving the markets now, so bulls were needing a chance to take a breath and prove themselves.
Bulls still have plenty of wiggle room though on the longer charts, so still plenty of signals of an uptrend. We did lose the daily EMA supports though.
Stay safe and have a good day!
