Basically here is the issue I see happening.
Too many people are bearish and everyone is expecting at least $6K and maybe even $5K. Everywhere I look whether its some trollbox, this forum, reddit, twitter, discord, everybody is pretty much short. And when the sentiment is one-sided its usually never a good thing.
I agree, I look at the BTCUSD trends from a weekly chart and it looks bearish since its making LH and LL, and the $6K would be a great area to go long. However look what happened a few hours ago. There was a 1 minute candle where the price went up $250 from $7200 to $7450 and liquidated a whole bunch of shorts. And this wasn't a big move, imagine the amount of shorts that would get liquidated if we hit $500 or $1000. And when we broke the $7080 low, what happened? It barely went down and quickly retraced. So it looks like there are no more longs to liquidate and just shorts to liquidate. So be careful out there.
Sentiment-wise, I'm seeing the same thing. Everyone and their grandma is bearish. Bitfinex's commitment of traders is really throwing me for a loop though. Longs keep rising and rising, up over 40K BTC now. Shorts are down near 6K BTC.
That's one of the things that's making me really question the low at $6,500.