Bitcoin has moved to an active bearish state. BTCUSD impulsively fall down from the giant triangle in which the price has consolidated since the end of June. The main question that is now on the minds of all crypto traders is when will this decline end. So, let's try to figure it out.
The way out from this triangle has been asking for a long time. Since mid-August, volatility declined, and trading was concentrated near the psychological level of $10000. As a result, first bearish impulse lowered the price of the main cryptocurrency by almost $2000 down to $8000. In the short term, short-ranged consolidation can be expected, and it is very likely that it will occur in the zone of $7500-8400. Here, bitcoin was trading in flat in May, levels are also confirmed by volumes.
Typically, such drops on BTCUSD occur in 3 pulses. Therefore, it is logical to assume that there will be 2 more downward impulsive movements ahead. According to the rules of technical analysis, when a breakthrough of a triangle occurs, movement in the direction of the breach can be expected by the size of the figure. In this case, the height of the triangle is slightly less than $5000. It turns out that the price can drop down to $10000 - $5000 = $5000. According to the volume profile indicator, iin the region of $5000 will be next large concentration of the volume.
Altcoins won intermediately from the fall. The BTC dominance index began to decline and is 68% right now. It’s too early to judge, but perhaps this will be a turning point and capital will again begin to flow into altcoins, which have been losing ground over the past six months. The Fear and Greediness Index (FGI) is at 12 points. It can be assumed that when bitcoin reaches true bottom, FGI will update the historical low, which is now at 5 points.
We can draw an analogy with 2017 and 2015, when the nature of the movement was similar to the current situation. After a vertical parabolic uptrend, a long correction took place, after which the price pulsed down and a long flat period began. If this pattern works this time too, then after the end of the fall the market will again have a long crypto-calm period.
The way out from this triangle has been asking for a long time. Since mid-August, volatility declined, and trading was concentrated near the psychological level of $10000. As a result, first bearish impulse lowered the price of the main cryptocurrency by almost $2000 down to $8000. In the short term, short-ranged consolidation can be expected, and it is very likely that it will occur in the zone of $7500-8400. Here, bitcoin was trading in flat in May, levels are also confirmed by volumes.
Typically, such drops on BTCUSD occur in 3 pulses. Therefore, it is logical to assume that there will be 2 more downward impulsive movements ahead. According to the rules of technical analysis, when a breakthrough of a triangle occurs, movement in the direction of the breach can be expected by the size of the figure. In this case, the height of the triangle is slightly less than $5000. It turns out that the price can drop down to $10000 - $5000 = $5000. According to the volume profile indicator, iin the region of $5000 will be next large concentration of the volume.
Altcoins won intermediately from the fall. The BTC dominance index began to decline and is 68% right now. It’s too early to judge, but perhaps this will be a turning point and capital will again begin to flow into altcoins, which have been losing ground over the past six months. The Fear and Greediness Index (FGI) is at 12 points. It can be assumed that when bitcoin reaches true bottom, FGI will update the historical low, which is now at 5 points.
We can draw an analogy with 2017 and 2015, when the nature of the movement was similar to the current situation. After a vertical parabolic uptrend, a long correction took place, after which the price pulsed down and a long flat period began. If this pattern works this time too, then after the end of the fall the market will again have a long crypto-calm period.