1.) On this logarithmic chart, we can see that there has been a very strong upwards that has remained as major support for a long time (in crypto-time). This broke on Jan 30th quite violently and closed near its lows.
2.) On the same day we saw a death cross occur indicating a potential shift to a more sentiment. Whether this downward movement holds up only time will tell.
3.) looks to be weakening as well
4.) When we look at the , we can see that usually at the bottom of a downtrend, the will approach if not touch oversold territory. Because we broke the major to the bottom AND the looks like it still has room to drop before touching the oversold area, I think it is very possible that we could see BTC go to the $7,500 region.... if not even flush out near the $5,500 range if we're lucky!!! You could see a once in a lifetime buying opportunity to pick up some dirt cheap coins which we probably won't see that low ever again.
5.) If we look at some external psychology, we just had a crap ton of newbies enter the crypto space over the past month. Most of which probably bought near the top. I foresee that once BTC breaks $9,000.... we could see some major capitulation by the weak hands that will justify the fall to $5,500-$7,500.
Let me be clear, I think this is very healthy for the market and I think we are still in the process of flushing out weak hands. Once this period is over, we would be starting a new bull cycle which will probably be more stronger to the upside than what we've seen before. It's interesting times, so keep sharp!