The sideways price action channel formed recently is very similar to those that were before after major drops, which followed with the rises. Taking into account the size and duration of the previous accumulation at around 8k, there is no much sense to push price lower, unless to crash it completely, which is unlikely. But, as soon as it didn't happen yet, and all the attempts from bears to push the price lower were bought out rather strongly, it is rather likely that we will not fall lower than 5.6-5.8k. In the shorter timeframes we could see the rise from the recent low was rather natural, with a few reasonable corrections. The volume is continuing to catching up too, which is a good sign in general. Therefore, especially with the shorts are so high now, I would expect the rise of the price for the next weeks. The amplitude of the major swings is becoming lower and lower, which means that the next upward movement may be less intense, even the gradual, smooth rise with the higher lows may be formed. That would be a very nice signal for the market got healthier and a trend is reversing. The major strong levels of support are indicated by purple lines. I would watch those to be reached and when the price will hold above them.
Not a financial advice.
Not a financial advice.