BTC Next Stop Low 6K's Unless Reversal Candle Appears Now.

BTCUSD -1.59% update: Bearish momentum is confirmed as price is now testing an important support level . At this time there are no signs or structures that say this market wants to retrace. That does not mean it won't, but the probability is low. Unless a bullish reversal candle appears, I am anticipating a test of the low 6Ks.

I wrote about 6565 area in my previous BTC -1.59% report on S.C. It is where buyers appeared back around the beginning of April. The only evidence that there is any buying now is the previous candle which is a bullish inside bar . As I wrote in my earlier report today on S.C., that was not enough to justify any risk taking, especially in the face of bearish structures like the trend line still in play.

In order for this market to demonstrate that a broader bullish trend is more likely in progress, it has to take out the 7790 level. This is the .382 resistance relative to the recent bearish structure. As long as this market continues to push lows, this level will continue to adjust.

This level also serves as a reasonable target for short-term swing trades. Even more reasonable than that is the low 7Ks where the bearish trend line is located. These are the areas we will be considered as targets if this market manages to establish a reversal off of current levels.

In summary, markets that push dramatic lows will generate all kinds of extreme analysis, media reports and a lot of nonsense. Do not lose sight of the fact that price is probing the 8171 to 4983 large magnitude support zone. I understand it is too wide to draw any meaningful conclusions from in terms of short-term timing, BUT it does tells us that if a broader reversal is going to happen, this is a very convenient area. In other words, I would not hold onto any shorts.

Always be patient, and if you are holding inventory, stay focused on the big picture. Price can go as low as 5669 and still be in a good position to retrace sharply. These are attractive levels for inventory accumulation.