We have been in a parabolic uptrend. The price went up a few hundred percent and we got parabola break. That's a significant signal that a major correction is on the way. Reversal candles at the top on the weekly are telling to be intermediate-term bearish.
We've got a lot of downside from the current levels at least to 8.5-7.5k, where we have a bunch of support.
According to Fib levels from the bottom to the recent top, 7250 would be a 61.8% retrace of this parabolic move up, which still would be bullish. 8500 is a strong horizontal level. EMA21 & MA30, which were pretty relevant and acted as support/resistance, are coming there.
As of right now, 8.5-7.5k area seems to be a good buy zone, but it depends on how BTC gets there. It might not even get there and reverse before, but we are expecting to see lower prices.
After a major run up like we just had, it's reasonable to expect one of two things to occur: the following correction is going to be either significantly deeper or last for much longer than people expect.
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Strangest major correction I have seen, those who went short are toast now
CryptoBullet
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@LeoKim, yes, agree with you. BTC did't retrace like it should've. Shorters are royally screwed. Fortunately we managed to foresee BTC pumping and went long @ 9.5k in our telegram channel.
BlecKent
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This is not a parabola drawn correctly.
TheCryptoHacker
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I think we'll see the 8.5k target hit soon. What do you think of this? Give us a follow also!
CryptoBullet
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@TheCryptoHacker, Don't think that we will see 8.5 soon. Situation has changed. Btc didnt break 9k, and now its going up. Looks like we wont see buying opportunity at 8.5. But lets wait and see.
TheCryptoHacker
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@CryptoBullet, Agreed. 8.5k would be a hell of a situation if we saw that this week.
Averaging investment along the way to the bottom would be safest I think. We can't be sure we'll reach the support, right ?