Summary:
Global market panic bled into the crypto market
Whales took advantage and dumped to liquidate longs and crash prices
Price bounced near bottom of triangle pattern which supports long term outlook
Analysis:
The overall long term triangle pattern in BTC has held true. Because of the global pandemic and broad stock market sell-off whales used this reaction as a catalyst to dump and push through 8k where many longs were liquidated. The price then found support near the lower triangle support which supports the long term view of the BTC price evolution. Since then price has been consolidating around $5300. The crash is offering BTC at a large discount with low risk, but if volume doesn't pick up whales might attempt to push prices down again.
Thesis:
Short term, BTC will continue to consolidate with a few possible scenarios afterwards:
Longer term outlook still bullish despite all scenarios.
Global market panic bled into the crypto market
Whales took advantage and dumped to liquidate longs and crash prices
Price bounced near bottom of triangle pattern which supports long term outlook
Analysis:
The overall long term triangle pattern in BTC has held true. Because of the global pandemic and broad stock market sell-off whales used this reaction as a catalyst to dump and push through 8k where many longs were liquidated. The price then found support near the lower triangle support which supports the long term view of the BTC price evolution. Since then price has been consolidating around $5300. The crash is offering BTC at a large discount with low risk, but if volume doesn't pick up whales might attempt to push prices down again.
Thesis:
Short term, BTC will continue to consolidate with a few possible scenarios afterwards:
- Bulls will enter the market:
- If volume is weak, bears will push prices back down
- If volume is strong, first short term target will be 6k
- Bears will try to push down even further. This will scare many and everyone will think BTC is dead once again.
Longer term outlook still bullish despite all scenarios.