Currently, there are some good support levels for bitcoin. The lower border of the pitchfork is currently holding the bitcoin price. Another good news is on the monthly chart, the 10 EMA line is still holding the price up so we do have two strong support level at this point (~7800) and these levels could form strong support and make a good entry for a long position.
However, we must be careful of the downward momentum at the moment as the price has just broken through the support of the descending triangle pattern as well as breaking below 200 EMA on a daily chart. The short term outlook does appear to be very scary but we must remember that fear is the worse enemy for any trader as equally as greed. I would rather be a bit more greedy when the price is lower than being more greedy when the price is higher. The key here is to know your position sizing and risk tolerant. You definitely don't want to get stopped out at the best price to buy when it dips 10-20% in a day.
At the moment, I believe it is unlikely that bitcoin will go below 6800 usd (+-10% swing which makes the lowest possible price for bitcoin to be 6200 usd if it is to continue a bullish sentiment). Below the 6200 level, it would be very bearish for bitcoin as it would break through a 6-year support level on Schiff pitchfork analysis and we could possibly enter another long bear market.
As for now, base on pitchfork/Schiff pitchfok analysis and EMA on weekly-monthly chart, I believe that we are still in a bull market.
However, we must be careful of the downward momentum at the moment as the price has just broken through the support of the descending triangle pattern as well as breaking below 200 EMA on a daily chart. The short term outlook does appear to be very scary but we must remember that fear is the worse enemy for any trader as equally as greed. I would rather be a bit more greedy when the price is lower than being more greedy when the price is higher. The key here is to know your position sizing and risk tolerant. You definitely don't want to get stopped out at the best price to buy when it dips 10-20% in a day.
At the moment, I believe it is unlikely that bitcoin will go below 6800 usd (+-10% swing which makes the lowest possible price for bitcoin to be 6200 usd if it is to continue a bullish sentiment). Below the 6200 level, it would be very bearish for bitcoin as it would break through a 6-year support level on Schiff pitchfork analysis and we could possibly enter another long bear market.
As for now, base on pitchfork/Schiff pitchfok analysis and EMA on weekly-monthly chart, I believe that we are still in a bull market.