Hello Traders,
Are you freaked out why Bitcoin is going down? Are you planning on selling your bitcoin when the price is this low? Well, let's look at what happened for gold before the ETF was accepted back in 2000.
As you can see from the weekly chart, the candle structure looks oddly similar to what we have in Bitcoin.
1) All time high 2) Correction 3) Lower high 4) Lower low 5) Lower high 6) Lower Low 7) Bull wedge breakout
At that point, most of people probably thought the bear market was over, but what ended up happening was that there was another pull back (printed another lower low) before it had massive bull run in the history.
And I believe that is exactly what is happening in Bitcoin right now. After Bitcoin rally to $8500, it has been in another bear market cycle, and I would give 70% chance that we will see another lower low before the massive bull run.
What I am saying here is that Bitcoin is not dead, but another pull back was necessary when it rallied to $8500. Just remember, those people who have million of dollars in hand have researched many different candle structures, and they know how people react in a given market. In the case of Bitcoin, those investors know that there needs to be another lower low before the bull run, so they are not afraid of driving the price of Bitcoin down to 5.3-5.6K. Just be patient. Trend reversal is imminent.
Are you freaked out why Bitcoin is going down? Are you planning on selling your bitcoin when the price is this low? Well, let's look at what happened for gold before the ETF was accepted back in 2000.
As you can see from the weekly chart, the candle structure looks oddly similar to what we have in Bitcoin.
1) All time high 2) Correction 3) Lower high 4) Lower low 5) Lower high 6) Lower Low 7) Bull wedge breakout
At that point, most of people probably thought the bear market was over, but what ended up happening was that there was another pull back (printed another lower low) before it had massive bull run in the history.
And I believe that is exactly what is happening in Bitcoin right now. After Bitcoin rally to $8500, it has been in another bear market cycle, and I would give 70% chance that we will see another lower low before the massive bull run.
What I am saying here is that Bitcoin is not dead, but another pull back was necessary when it rallied to $8500. Just remember, those people who have million of dollars in hand have researched many different candle structures, and they know how people react in a given market. In the case of Bitcoin, those investors know that there needs to be another lower low before the bull run, so they are not afraid of driving the price of Bitcoin down to 5.3-5.6K. Just be patient. Trend reversal is imminent.
Comment:
And here it is! Candle structure looks exactly the same if you exclude weekend candles!
Bitcoin is printing almost identical pattern:
1) big red candle 2) green candle 3) engulfing red candle 4) indecisive green candle 5) another indecisive green candle
If we follow the same pattern as gold, we may have relief rally.
However, 5.3K is still a possibility if we form a bear flag in daily chart.