Everything is on the chart.
We are in a typical bubble, the question is when it is going to end. There have been 2 similar situations in the market - Dotcom and BTC in 2014. Since there are no big bad news (like Mt Gox or Tether turning put to be a scam), the price is more likely to follow Dotcom. There are some technical reasons for Bitcoin to go lower to 3-4k support (simply because it's overvalued), but if it keeps falling at the same rate as it does now, the RSI at the Daily chart will hit 30 (the first time in 2.5 years) just at 75% retracement. That would mean the price reversal at that level at least for mid-term. What happens next is an unanswerable question now: a new bullish cycle might begin or it can eventually retest lower support.
It might as well hit 200 Daily MA and bounce from there, forming a nice double bottom , but it doesn't intuitively seem right to me that we will retrace 60% after 10 000% bull run, everything is possible of course, so it's the 2nd most important level to watch out for.
Other supports on the chart are also strong, but I don't think they are the ones, we are going to bounce from.
Overall, patience is now more important than anything else. Bitcoin is capable of visiting 2k-prebubble levels again. It won't be a death for crypro, it will be a great opportunity to load up with it for long-term. We still have lots of potential in this market.
Keep up with the updates.
We are in a typical bubble, the question is when it is going to end. There have been 2 similar situations in the market - Dotcom and BTC in 2014. Since there are no big bad news (like Mt Gox or Tether turning put to be a scam), the price is more likely to follow Dotcom. There are some technical reasons for Bitcoin to go lower to 3-4k support (simply because it's overvalued), but if it keeps falling at the same rate as it does now, the RSI at the Daily chart will hit 30 (the first time in 2.5 years) just at 75% retracement. That would mean the price reversal at that level at least for mid-term. What happens next is an unanswerable question now: a new bullish cycle might begin or it can eventually retest lower support.
It might as well hit 200 Daily MA and bounce from there, forming a nice double bottom , but it doesn't intuitively seem right to me that we will retrace 60% after 10 000% bull run, everything is possible of course, so it's the 2nd most important level to watch out for.
Other supports on the chart are also strong, but I don't think they are the ones, we are going to bounce from.
Overall, patience is now more important than anything else. Bitcoin is capable of visiting 2k-prebubble levels again. It won't be a death for crypro, it will be a great opportunity to load up with it for long-term. We still have lots of potential in this market.
Keep up with the updates.
Comment:
BTW, we need too break 2017 parabolic trend. But I think we will do it soon