As we are making support right now, we might have a wave up again if stay above and break through the 21 EMA again, as we are rejected from the 50ema, which is a positive sign. I believe we are still in a bullish trend and if so, we will see higher highs until 50-60K. If not, and we break down from 28K-30K again, we could test at least the 50% fib retracement and the 61.8% which is perfectly the 20K level, next support and the revisit of the old ATH of 19.6K. In both cases I am quite sure there is no need to panic. Similar structure we have seen in the build up from Tesla, which after revisit of old ATH, shot up to 1K and dropped back to even 350usd, to shoot back up to 2K-3K levels.
So the top of 40K is to me a temporary stop and a subdivision in a larger cycle, could be the end of a 3th or even 1st wave. The fact that we had a lower low below the previous drop to 30K is good, as we are taking more buyers in the game and a descending pennant is more bullish than bearish.. though, we have to have our consolidation above the 30K and at a point get above the 36K rapidly. So again, if this all fails, a retest of 20K, 61.8% fib, and 200EMA is all possible, but still a healthy correction, even if half of the bitcoin market cap is wiped out.
On the other hand, I see healthy recoveries in altcoins and NO deeper corrections, this means a tilt to Alts is ongoing and lows are bought up at any occasion.
Above corrections in bitcoin are not overwhelmingly fast or with high volume.. it is still steady, though we must get increasing buying volume.. but even then.. I would look for high volume alt coins.
Trust me, bitcoin is NOT going below 20K anymore, or this would be the last visit to this level.
So the top of 40K is to me a temporary stop and a subdivision in a larger cycle, could be the end of a 3th or even 1st wave. The fact that we had a lower low below the previous drop to 30K is good, as we are taking more buyers in the game and a descending pennant is more bullish than bearish.. though, we have to have our consolidation above the 30K and at a point get above the 36K rapidly. So again, if this all fails, a retest of 20K, 61.8% fib, and 200EMA is all possible, but still a healthy correction, even if half of the bitcoin market cap is wiped out.
On the other hand, I see healthy recoveries in altcoins and NO deeper corrections, this means a tilt to Alts is ongoing and lows are bought up at any occasion.
Above corrections in bitcoin are not overwhelmingly fast or with high volume.. it is still steady, though we must get increasing buying volume.. but even then.. I would look for high volume alt coins.
Trust me, bitcoin is NOT going below 20K anymore, or this would be the last visit to this level.