TECHNICAL ANALYSIS:
Today being the 415th day bitcoin price has dropped from its ATH to its current price, comparing it with the previous bear market which lasted for 412days from am ATH(all-time-high) of $1148 and a low of $152.
Criticism of these two different bear market move is the RANDOM WALK THEORY:
"The theory states that the past movement or direction of the price of the overall market is not a suitable predictor of future movement"
This theory holds that the overall market price take a random path, and one that is unpredictable. Regardless of what has happened in the past, the chance of a future price going up is the same as the chance of it going down. Therefore, any attempt to predict future price movement, either through fundamental or technical analysis based on the past, is futile.
A lot has change looking at the past and the present FA and TA. The price could go lower or reverse at this current price level, the price of Bitcoin is yet to retest the previous low price it touched in $3116.
On the one day time frame, price has maintained a measured move down. The idea behind a measured move is that the second leg will equal the first leg in both price and time(most of the time).
The move shows that there would likely be another corrective phase 4 if price doesnt break the corrective phase high(moving the price to test $3361).
BITCOIN PRICE IS MORE LIKELY TO BOUNCE TO THE UPSIDE THEN THE DOWN SIDE(60/40 UPSIDE/DOWNSIDE).
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
Today being the 415th day bitcoin price has dropped from its ATH to its current price, comparing it with the previous bear market which lasted for 412days from am ATH(all-time-high) of $1148 and a low of $152.
Criticism of these two different bear market move is the RANDOM WALK THEORY:
"The theory states that the past movement or direction of the price of the overall market is not a suitable predictor of future movement"
This theory holds that the overall market price take a random path, and one that is unpredictable. Regardless of what has happened in the past, the chance of a future price going up is the same as the chance of it going down. Therefore, any attempt to predict future price movement, either through fundamental or technical analysis based on the past, is futile.
A lot has change looking at the past and the present FA and TA. The price could go lower or reverse at this current price level, the price of Bitcoin is yet to retest the previous low price it touched in $3116.
On the one day time frame, price has maintained a measured move down. The idea behind a measured move is that the second leg will equal the first leg in both price and time(most of the time).
The move shows that there would likely be another corrective phase 4 if price doesnt break the corrective phase high(moving the price to test $3361).
BITCOIN PRICE IS MORE LIKELY TO BOUNCE TO THE UPSIDE THEN THE DOWN SIDE(60/40 UPSIDE/DOWNSIDE).
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.