Plenty of room for more downside
Although there is still room for the current drawback to expand even further up, it still has a lot of barriers before the long-term downtrend is broken. For now, the downtrend remains in force with two touches of strong support at $210-$220 that may serve as a breakdown zone. If and when the price returns to this level, we may get a quick snap to $170-$180 for a while, after which it may double bottom or continue to double digits territory.
Although the price appears to be close to a reversal on the analog scale, I would say this is deceptive on such a large time frame, whereas the log scale, as shown, gives us a clear idea of major historical areas of support and resistance. The price has been behaving relatively predictably in the last few months, but the volatility isn't great, so I think it would be wise to wait for a breakdown before trying to catch smaller moves.
Although the price appears to be close to a reversal on the analog scale, I would say this is deceptive on such a large time frame, whereas the log scale, as shown, gives us a clear idea of major historical areas of support and resistance. The price has been behaving relatively predictably in the last few months, but the volatility isn't great, so I think it would be wise to wait for a breakdown before trying to catch smaller moves.
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