Looking for possible reasons why people piled on the selling side and caused the sudden drop from around $7000 by another $500, we cannot help but notice the BitMEX FUD that gets thrown around.
Apparently, the exchange claimed one of their internal systems became very slow.
When your business model relies on all your internal systems NOT becoming slow and just executing orders because you are paid to do it, there's not much room for hope in between being able to and not being able to do your only job.
If this is the reason for the drop or not, we may never know.
The fact remains.
Technicals show us the price on newly found resistance in a consolidating pattern.
If that gets broken to the downside, we're open for another considerable slide.
The upside seems to be capped at around $7200.
Conversely, the downside may test the support at around $6850.
In trading, in general, it's much like in the Wild West once was:
First, you shoot - ask questions later.
That is if you want to live to fight another day.
There's no good reason to fight the market.
It never was.
You would be fighting the irrationality of the crowds.
No amount of reasoning can get through to a panicked collective.
Trade well!
