The trading range has been broken to the downside, at this point it is better to check my 2 months VWAP to see where are decent supports.
We have ~$570 and the VWAP itself at $500. At the moment the price is floating around the first positive deviation line ($570) i’m not sure if it can react from here or not despite the fact that the daily RSI is very oversold, but if during August there will be a drop down to $500 i’ll probably increase my position.
With the recent level of volatility (relatively low) a drop to $500 is possible and i think that there are many investors out there ready to buy at a cheaper price, at or below five hundreds dollars.
To conclude, we are seeing a physiological drop, totally unrelated to good/bad news; it is only an issue of supply and demand trying to find a new equilibrium point; once reached a new bottom is established and this market will be ready to move up again.