Many traders are trying to "front-run the truck" by placing Long orders when they see the price touch the $5.00 area, hoping for a rapid technical bounce. This is a classic liquidity trap. In a downtrend with a continuously lower peak structure, every attempt to catch a bottom without confirmation can easily be crushed by the selling pressure of large capital outflows.
In reality, price behavior shows that light bounces are immediately extinguished, proving that the bears completely control the game. Thin liquidity at lower price levels is allowing whales to continue to push prices down to wipe out the last stop-loss orders of the bulls. Don’t try to be the hero in a market that is fleeing; wait until the real panic is over and the price structure begins to stabilize with depleted volume.
