BTCUSD is scary but not hopeless. It can be seen from the analysis that bitcoin corrects with a double wave sequence. In the figure, I drew the distance W1ATR (yellow square). This means that according to the value of W1ATR, the price movement travels this distance in 1 week. So we have now reached the bottom of the correction level. I expect to turn north from this level and assume a further rise. IMPORTANT NOTE. In the event that the price movement falls below 33037usd (W1ATR correction level), it could fall to nearly 18,000 usd. Therefore, make current long entries only with narrower STOP distances.
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In case the decline continues, it is advisable to look for short entries with a target price of 17000 usd.
People wanted to see the uptrend continue more than reason could justify. People thought a correction enough to accommodate the recent vertical uptrend had happened. With three lower highs, this was a clear sign of likely swing failure. When 30k breaks after a day like this, it would be possible to envision 20k. Area to enter could be between 27 to 23k reasonably with a risk to 20k and lower.
meszaros
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@balaupre, Thanks for the post. An interesting thing happened on the stock exchanges today. Everything fell. Dollars, stocks, gold, commodities, crypt currencies. Where did the money go? I haven't seen anything like this in many years. Honestly, I'm even looking for an explanation.
balaupre
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@meszaros, Crazy indeed. I start to believe (although this is pure self believe) that bitcoin acts more and more as a variable to inflation and the potential of a new gold equivalent, but very much depends on the health and dynamic of global economics. No idea what happened yesterday, it followed. What is even crazier, it went down in a similar way on Jan 21st 2020. but January as alway been a market anomaly where small-mid cap are doing twice better on average than they do all other months, and in the opposite, large-cap do worst. Is this all connected...
Girrad
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Nice Analysis. So the dump was a fakeout? We can again buy here at 32k?
gwfarrow96
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A healthy correction imo. The rate which BTC was increasing in Dec early Jan was unsustainable and it is inevitable that we have a pull back of this size. Indeed we had larger pull backs in 2017 before rallying to ATH.
meszaros
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@gwfarrow96, In my opinion, more super cycles will emerge in the coming years. Money printing has accelerated. Everything will rise. The FIAT currencies are devalued. Everything will be strengthened, the crypto, the raw material, the stocks.
mikeUkTrading
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We can see the price seems to builds A,B,1,2,3 Eliot's wave reversal. it can be seen on ATR 15.