The new low potentially can end a corrective decline from the high made at $17.14. Before the current decline I was targeting a move towards $9.00 – 8.00 and BTC/USD to test $7400. I felt a substantial pullback would be needed to shake off the Johnny-come-lately’s (bulls that buy into the euphoria of a 5th wave). So far we have seen a substantial pullback and likely to have kicked off many of the bulls that bought into the spike into $17.41.
The more pessimism, the better, to establish a significant low, you want the masses to be again following the status quo. So the same traders that chased into the spike at $17.41 are the same traders that are selling or bearish after a substantial pullback. Nothing moves in straight lines.
‘For your gain, someone has to feel the pain’.
A strong rally above $10.50, then $12.00 is needed to further support a move higher, although an initial advance in 5 waves would be a great start to suggest a low is in place for the end to wave Y.