Here we have BTC/USD on the 4H chart.
Recently, price has been in a strong up move. Price has recently lost some of the momentum that created the bull run. On the 4H chart, it is clear that price is correcting after some upside.
Despite price having a big bull run, it is time for it to correct. I believe that price will now continue to stall to the sideways of 13540. When I looked further back at price action on the chart, I noticed that this pair has a tendency of correction before a strong rally again.
This trade could play out in 2 ways, I have outlined them below
-Price continues to rally to the upside to the upside target of 18990. Bare in mind if this plays out that there will likely be some corrections on the way to the upside target.
-Price may retest the upside of 15570 before the break down begins to the side-wards support of 13770
I am excited to see how this trade plays out.
I will update this analysis as the trade progresses.
In the related ideas, I have posted my other Cryptocurrency ideas. Please leave a like and comment, it would be highly appreciated.
Monthly,weekly and daily 9s and RSI overbought.
WTF Btc just made all the technicals look Wrong.
Its in a no trade zone for me this month.
Too many noobs jumping on coinbase.
Cme better keep a tight leash on these shorts
This could get away form them real quick!
If this support level breaks, it could an all out break down.
A lot of peoples logic is that - "Bitcoin leads the market, and the altcoins are somehow submersively connected to Bitcoin. So what happens to Bitcoin will therefore sabotage other altcoins"
With this logic in mind, people would be reluctant.
Another thing for you to bare in mind is: Investment and financial institutions are only just beginning to get involved in the Cryptocurrency market. So they will be testing the water of Bitcoin first, the altcoins later. Institutions will not yet have sufficient knowledge to know what will happen to altcoins when Bitcoin does its thing.
Financial institutions would not diversify a Cryptocurrency asset they hardly understand, against other Cryprocurrencies that they certainly don't understand. Bitcoin may be diversified against other instruments, but definitely not in Cryptocurrency.
It is kind of like putting money into a pool full of sharks, then taking some out and putting it into another pool of sharks. One might eat the money before the other, but ultimately they will both be eaten.
But this perspective will surely change in the near future. When institutions start getting involved properly, it wont be long until the market market is sussed out.
*Disclaimer, this is more of a calculated guess than anything.*