This negative price action is a great buying opportunity right now in my opinion. The fear is creeping in, shorts will pile on and could make a perfect storm for a squeeze back up to new all time highs in December or January.
Failed to hold the 8 week (white line), so assumption is we come down and test the 20/21 week average price, which is at £36k-38k. Probably a decent risk to reward entry there if you put in a tight stop loss. Everyone blaming the Africa Covid variant but I think that's just people looking for reasons, the indicators have all been flashing bearish for a good few days, such as breaking the 8 week.
See how this plays out now.
3 decent options in my opinion
1 - Place some low bids between 36-38k. There's a lot of confluence there but also when everyone expects something like that to happen, it rarely plays out. Could drop further to shake out those waiting on that move. Maybe 34k. (highest risk-reward)
2 - Average in over the next few weeks if you're anticipating a reversal. (medium risk reward)
3 - Wait for the momentum to swing back up and take positions when indicators start showing strength again. (lowest risk reward)
I guess the fourth option is to short everything or don't get involved at all. But where's the fun in that. I think we'll be looking back at this in 3 months and the fear will seem ridiculous. Just my opinion, however.