Bitcoin saw a substantial selloff yesterday, and broke through to the $30K handle briefly. This dip was immediately bought back, which could suggest a bottom to the bear market at least for now. Recall that prior selloffs were reluctant to get bought back and stabilized in their new price range. However this time, Bitcoin tested the $39K's before getting bought back to value in the $42K's. We aren't hopeful for a bull run just yet, but it appears the markets feel the low $40K's are fair value for now. That being said, the fact that we tested $39K in the first place is not a particularly healthy sign for BTC. Watch for further tests into lower price territory as the more we feel out these levels, the more comfortable we are at holding them. Currently, we appear to be holding onto the narrow range established earlier this week, between $40K and $42K. This is still a relatively narrow range for Bitcoin. Watch the vacuum zone above to $43.1K, which seems to be the level to break before we can consider $45K's. From below, $40K seems to be holding strong, but $38K is the next target below should we test lower levels again.
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