Bitcoin continues to grow in a parabolic trend, which is likely to continue in the short term. And the most important questions for traders now are - where exactly the correction will start and how big it might be?
Current price target is likely to be near $ 9 700–10 000. It corresponds to the Fibonacci level and level of bull trap from May 2018. In a more aggressive scenario, uptrend will impulsively touch $ 11 500-11 800. This is the zone of next important Fibo level and the earlier bull trap (February-March of last year).
Obviously, the current trend is nearing completion. In addition to the almost vertical slope of the trendline, there is an obvious bearish divergence between the price and the oscillators, as well as between the price and the trading volumes. However, the biggest clue comes from the psychological fear and greed indicator : ibb.co/B233mDW . In mid-May, he set a new historical maximum at 78 base units, which means excessive greed in the market. And as everyone is well aware, it is a perfect moment for the correction to begin.
In the past cycles, some analysts noticed a pattern that the market is growing by 100-300%, after which a 30-40% correction occurs. Thus, in the most optimistic scenario, we can expect a correction to the $ 7 000-8 000 zone, and in more likely scenario, to $ 6 000-7 000. Nevertheless, the size of the correction can be more impressive - after BTCUSD chart aggressively updating new historical maximums, an 80% correction often occurred. So traders should take into account such numbers too and to be morally prepared fro them.
The upcoming correction does not mean that the cryptocurrency market will no longer grow. It will be, especially if we talk about the long term. It is almost obvious that cryptowinter has benefited him, the market is showing obvious signs of recovery and maturity.
Current price target is likely to be near $ 9 700–10 000. It corresponds to the Fibonacci level and level of bull trap from May 2018. In a more aggressive scenario, uptrend will impulsively touch $ 11 500-11 800. This is the zone of next important Fibo level and the earlier bull trap (February-March of last year).
Obviously, the current trend is nearing completion. In addition to the almost vertical slope of the trendline, there is an obvious bearish divergence between the price and the oscillators, as well as between the price and the trading volumes. However, the biggest clue comes from the psychological fear and greed indicator : ibb.co/B233mDW . In mid-May, he set a new historical maximum at 78 base units, which means excessive greed in the market. And as everyone is well aware, it is a perfect moment for the correction to begin.
In the past cycles, some analysts noticed a pattern that the market is growing by 100-300%, after which a 30-40% correction occurs. Thus, in the most optimistic scenario, we can expect a correction to the $ 7 000-8 000 zone, and in more likely scenario, to $ 6 000-7 000. Nevertheless, the size of the correction can be more impressive - after BTCUSD chart aggressively updating new historical maximums, an 80% correction often occurred. So traders should take into account such numbers too and to be morally prepared fro them.
The upcoming correction does not mean that the cryptocurrency market will no longer grow. It will be, especially if we talk about the long term. It is almost obvious that cryptowinter has benefited him, the market is showing obvious signs of recovery and maturity.
