Everyone got shocked today because of the massive dump appeared on the market. Bitcoin dumped from $12000 to $10500 which is 15% decline. But not everyone remember that the same situation has already happened.
Let's remember May 2019, Bitcoin has been growing sharply but suddenly dumped from $8400 to $6600 which is 27% decline. But then the price has come back quickly and continue growing upwards, drawing new highs.
The same situation can happen now: this massive dump candle was made just in order to trigger stop losses and liquidations, to gain more fuel for an upward rally! Let's see how it goes.
That drop in May also closed a gap, and right now we have an unclosed gap below us. Your comparison is not apples to apples as you the % dropped back then was bigger than the current drop.
johnesz
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@ed4, I agree with you, btw on Friday was almost closed gap from aug. 2019
ed4
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@johnesz, Correct, almost. Now we have two gaps above, one below.
Rsi was at the bottom back in May and we had an open CME gap at $11798 From August 5th 2019 . Now we have an overbought rsi and an open CME gap at $9665 . I agree that we can correct and go back to 12k since CME futures never broke 12k but, it won’t last long and we will drop sharply towards $9600