What a ride...
So much growth, so much excitement, and fun.
But Bitcoin is now crashing, the correction is here...
What to do? Where to go?
Whatever you do really depends on your own trading plan, your strategies, your goals...
But the real question should be...
- How far low is Bitcoin dropping?
- Will it go down forever, is this the end of the world?
- Or will it bounce and resume growing after hitting support?
Let's look at the chart.
We have multiple timeframes we can examine.
It is too early for the weekly, the week just started and prices are still trading above EMA10.
The monthly is still ongoing... More on that on the next update.
But we have good data coming from the and 4h timeframe.
We have the strongest action since March 2020 when Bitcoin hit a low.
The big difference is that prices back then were low, now we were hitting all-time highs.
Bitcoin's price managed to break EMA10, EMA21, EMA50, and EMA100 (currently trading back above EMA100 as this level holds as support).
With such strong action, we can expect for there to be more.
$30250 Now becomes our main support.
If this level breaks, we go back and hit $27,000 once more...
But if this level holds, there is the possibility to resume the growth.
Look at the green, blue and red arrows...
The longer BTC stays above $30k, the higher the chances for green again.
If it breaks below, prices will hit the next and then the next one until one holds.
This is all for now.
Thanks a lot for your support.
Looking at candle bodies on the daily, it is "just" a drop of ~12%.. (yesterday candle closed above 35,000)
As you pointed out, it is a strong action (42,000 to 30,200), but the stronger action was from 16,200 to 42,000 :D....
Anyway open for all possibilities... not sure if need to get worried much, as 5 months of bullish action (considering action started after last "dump" in September 20) shouldn't be reversed with a single day of bearish action (again price closed above 35K)