I prefer reading historical resistance levels more than relying on technical analysis.
Historically, there are no stability levels at $ 8000 when we fall below $ 9000 and therefore if the price continues to fall we will see $ 7,500 range soon.
So far there are no reasons for further collapse and therefore I do not expect to fall below $ 9000. If there is no bad news, we may return to ($ 9800 to $ 10,200 range.)
Just so you know, you're employing technical analysis right now. Horizontal support/resistance levels are crucial to TA.
$8,300 was actually a daily pivot on the way up. There was a month-long consolidation in that range, so it would make sense to find support in the $7,500-$8,300 range, if not at $8,300 itself.
S/R is not the only thing to look at, however. If we look at historic charts, the 100-day and 20-week moving averages have often served as bottom areas during uptrends. The 100-day =
$8,100 and rising; the 20-week is at $7,250 and rising.
Then we can look at time and magnitude. A typical bull market correction during 2016-2017 took anywhere from 1-5 months and ranged from a 30-40% drop. We've already seen a 35% drop or so. A 40% drop would be
~$8,300. By the time another month or two have passed, our MA supports will be rising to the lower bound of expected downside.
