Price discovery takes time. Between this process we must be prepared. Our job as a trader is to protect our capital and identify when things will happen.
Hyper growth results in hyper drops back to where the growth starts. The question we all have is when is bitcoin moon?
Until we finish our correction causing mass capitulation we will not be able to get positive price action to bring us to a neutral / or bull market.
Over the past few weeks we have seen lots of attempts to break out and they all failed terribly. This will essentially cause the market to crash back down. According to one of my first charts I topped bitcoin out @ $7,500. I did not expect us to gain so much traction to bring us to the $20,000 levels. in this chart i made it clear that it would have to return back to $3,000 area before we stabilize. It seems the weaker bitcoin gets the more apparent it is to me that we will need to take a big dip back down where we can reset and start the move back up.
Chart is here -
We have a cross forming above signaling very signs. We are approaching a new downward trend on the daily and weekly. All of this will certainly make us go lower. Lock the hatches and prepare for a drop . No new trades should be placed and stop losses should be placed according.
If your a long time holder, I would start buying back on the levels I indicated in the chart.
For shorters you should have opened your short positions over $8,200
Good luck traders,
This is not trading advice! just friendly charting