Are we in a crisis? Is this the bubble burst?
I don't believe so, if you are panicking then take a breather.
As you can see on the chart, for now we have found support on the 21 Ma on the daily chart which follows the support line as drawn.
Now this might break (high possibility) and if this happens or aim is to have buy orders ready around 14K which is the .618 fib. Would be very healthy for bitcoin to be honest and would imply a minimum of 30% retracement.
If that breaks our next support level and buy area is at the .382 fib level at around 11K. Less likely to happen but hey this is bitcoin and anything can happen.
If bitcoin finishes its retracement be ready for a quick return to higher levels since the bulls lying in wait :)
Happy trading!
I don't believe so, if you are panicking then take a breather.
As you can see on the chart, for now we have found support on the 21 Ma on the daily chart which follows the support line as drawn.
Now this might break (high possibility) and if this happens or aim is to have buy orders ready around 14K which is the .618 fib. Would be very healthy for bitcoin to be honest and would imply a minimum of 30% retracement.
If that breaks our next support level and buy area is at the .382 fib level at around 11K. Less likely to happen but hey this is bitcoin and anything can happen.
If bitcoin finishes its retracement be ready for a quick return to higher levels since the bulls lying in wait :)
Happy trading!
Comment:
Comment:
Some extra details that are interesting. If we look at the RSI on the 4H time frame we can see that BTC has historically recovered rather quickly whenever entering the oversold area. Marked areas are the correction from september and the BTC vs BCH fight in november.
Believe we have a day or so of more sell side before we rally back up.
Believe we have a day or so of more sell side before we rally back up.
Comment:
Update on BTC: support levels held but we're not yet in the clear.
Not enough supporting buying volume, which could mean we will revisit the lows.
If we can get past the 16K mark and close above we can expect the corrcection to be finished.
Not enough supporting buying volume, which could mean we will revisit the lows.
If we can get past the 16K mark and close above we can expect the corrcection to be finished.
Comment:
BTC has broken out of the triangle. Believe we can truly say the correction is over now and that it's time to look towards more up-side.
I do believe that we should start getting worried if BTC closes below 10K which could be an indication that we might be entering a bear market and that this is not a simple correction anymore. On the RSI side we haven't touched the oversold region which could also indicate more selling to come.
We wait to see when the bulls will take back control.
Happy trading!