There's two major theories here. One is the bearish descending triangle. If it breaks down, most traders are aiming at the $2,000s or $3,000s.
The second is a rising bottom. Here's one example of a Wyckoff accumulation schematic:
[im g]https://i.imgur.com/w7zhUFK.png[/img]
We need to see a sign of strength (SOS) to confirm. And if we do go that way, I don't think it'll be a bull run like last year. No ATH expected. I think it'll be a mid-term rally that tops near the $10K or $12K resistances, or maybe a bit higher.
At this point, I will actually be pointing to the accumulation period.
Although, we may be wrong as only time will tell wherever the market eventually tends to but for now, we just have to be patient and monitor closely.
The sign of strength of the bulls is most definitely not there yet I must say and even though they have been holding up and creating a higher low in the short term for a while now, we can just expect that we are still in a bigger triangle and how we break out from this big triangle is what would determine how things would pan out eventually.
At the moment, nothing is certain yet actually and for now, we will just see some dwindles between $6k and $7k until we are able to break out to one direction.