Bitcoin just hit 8000 and is at -42% of the cycle high. I believe this is the end of the correction and the cycle bottom is in. This correction is following a similar pattern to the June-August 2016 correction.
1. Bitcoin reaches a peak, consolidates, goes sideways, and then crashes at the end of the correction on high volume.
2. Daily RSI during both correction lows is ~20-22.
3. Bitcoin fell below the 100 day MA and bounce off the 200 day MA.
The prevailing trend is bullish. I believe this was a correction akin to July 2016, where the price hit the .618 fib level, and corrected 35-40%. Bitcoin corrections in a bull market usually fall in the 30-45% range. We are now nearing the end of that range at 42%. Unless the bear market is not over, I believe this is just a routine correction, and the price will recover, and the next move will be to ~20,000.
1. Bitcoin reaches a peak, consolidates, goes sideways, and then crashes at the end of the correction on high volume.
2. Daily RSI during both correction lows is ~20-22.
3. Bitcoin fell below the 100 day MA and bounce off the 200 day MA.
The prevailing trend is bullish. I believe this was a correction akin to July 2016, where the price hit the .618 fib level, and corrected 35-40%. Bitcoin corrections in a bull market usually fall in the 30-45% range. We are now nearing the end of that range at 42%. Unless the bear market is not over, I believe this is just a routine correction, and the price will recover, and the next move will be to ~20,000.