Hi Traders!
What's going on with Bitcoin? You probably wonder why we are sinking so much and what's going on? Today's analysis is devoted to Bitcoin and its daily chart. Again, we will present a few possible scenarios.
To begin the analysis we need to say that there are currently many possibilities for future development. Few expected a record 42% pump to be completely cleared. We also got a confirmation that the institutions were short on Bitcoin last week so they had known what was going to happen. How to deal with the whole situation now?
1. The best option
The best thing that we could await is the scenario that we are currently at the bottom and we would go higher. We cleared more than 65% of the entire growth and that's a sufficient retracement. Only in 35% of cases in cryptocurrencies, the chart reaches such retracement. In addition, we've tested a key level of $ 6400, which is a long-term “point of control”. From this point of view, the chart has passed the test and could point upwards.
2. Consolidation
This option seems more likely. Rarely happens that after such a rapid fall an immediate growth comes. The chart usually recovers for a few weeks. In this case (indicated by a green arrow on the chart). Institutions tend to buy Bitcoin in large numbers via OTC at this time, and the market is flooded with negative information. We can see something similar now.
3. The bottom is yet to come
No one knows where the real bottom is. Neither the best trader nor the best analyst can pinpoint this. Even at this point, we can be at the bottom. Where could we go in case of continuous decline? Quite many talk about the level of $ 5000.
Our recommendation? It may be too late to go short and too early to go long. How to figure the situation out? Buy more for the long-term portfolio.
May the crypto be with you!
What's going on with Bitcoin? You probably wonder why we are sinking so much and what's going on? Today's analysis is devoted to Bitcoin and its daily chart. Again, we will present a few possible scenarios.
To begin the analysis we need to say that there are currently many possibilities for future development. Few expected a record 42% pump to be completely cleared. We also got a confirmation that the institutions were short on Bitcoin last week so they had known what was going to happen. How to deal with the whole situation now?
1. The best option
The best thing that we could await is the scenario that we are currently at the bottom and we would go higher. We cleared more than 65% of the entire growth and that's a sufficient retracement. Only in 35% of cases in cryptocurrencies, the chart reaches such retracement. In addition, we've tested a key level of $ 6400, which is a long-term “point of control”. From this point of view, the chart has passed the test and could point upwards.
2. Consolidation
This option seems more likely. Rarely happens that after such a rapid fall an immediate growth comes. The chart usually recovers for a few weeks. In this case (indicated by a green arrow on the chart). Institutions tend to buy Bitcoin in large numbers via OTC at this time, and the market is flooded with negative information. We can see something similar now.
3. The bottom is yet to come
No one knows where the real bottom is. Neither the best trader nor the best analyst can pinpoint this. Even at this point, we can be at the bottom. Where could we go in case of continuous decline? Quite many talk about the level of $ 5000.
Our recommendation? It may be too late to go short and too early to go long. How to figure the situation out? Buy more for the long-term portfolio.
May the crypto be with you!