Hello @cryptographic,
Extraordinary good article & an analysis.
As you said, professionals traders take these panic situations as entry points to instant trades. BTC dropped instantly, but I think it will drop more & will touch your resistance levels also. Extraordinary good guidance for all crypto traders, hodlers & investors.
I don't think the selling is over either. As always, we're talking about possibilities - everything's a setup - and probabilities, not predictions, but I think there are lots of reasons why we should see more selling into year end, from good old profit taking to tax rules regarding crypto investing and trading. https://news.bitcoin.com/trading-bitcoin-for-an-altcoin-wont-shield-you-from-the-irs-anymore/ That would just suck if you had to cover the tax costs before ever reverting to fiat. And does everyone of the crypto nouveau riche have that kind of capital to cover those costs without selling crypto? That could be a terrible snowball in the face.