BTC extended its current corrective phase from a classic A-B-C pattern into an extended A-B-C-D-E pattern. This is because it failed to clear point A on its latest move up. You'll notice that in the previous A-B-C correction (purple), the price did manage to clear point A on the way up, and thus kept on going. But this time, it stopped at A on the way up, and put-in a new marker D. Having failed to clear that level it had nowhere to go but back down again, putting-in a new marker E at the important support level of $9,600.
$9,600 is important because it provided support at the end of the last corrective pattern (purple) at point C. So it is currently no worse off than it was two weeks ago. In fact, the recent upswing and return down to the current level has been a good dollar-cost averaging opportunity for those who like to sell a little on the way up, and then buy it back down at a discount. When you do that (say, sell a bit every $500 up and buy it back every $500 down, or even using $1,000 intervals), you can either remove the profit as a cash withdrawal, or reinvest your profit into more BTC at the lower level. The latter option is like getting free BTC for simply trading the volatility.
If BTC falls through the current support line of $9,600, its next support would likely be $8,850. This proved to be a significant line from the end of May to the middle of June, acting as a stopping point for BTC both on the way up and on the way down (yellow arrows). Strong support levels where the price stops several times are like a groove across your lawn that keeps catching things that roll into it. So too with support levels for any given commodity or stock. They're like price catchers that hold the price there for a while.
Given the future of BTC and crypto in general, any pull-back is always a sound buying opportunity. Just nibble away at it. In a year or two, you'll be glad you did.
$9,600 is important because it provided support at the end of the last corrective pattern (purple) at point C. So it is currently no worse off than it was two weeks ago. In fact, the recent upswing and return down to the current level has been a good dollar-cost averaging opportunity for those who like to sell a little on the way up, and then buy it back down at a discount. When you do that (say, sell a bit every $500 up and buy it back every $500 down, or even using $1,000 intervals), you can either remove the profit as a cash withdrawal, or reinvest your profit into more BTC at the lower level. The latter option is like getting free BTC for simply trading the volatility.
If BTC falls through the current support line of $9,600, its next support would likely be $8,850. This proved to be a significant line from the end of May to the middle of June, acting as a stopping point for BTC both on the way up and on the way down (yellow arrows). Strong support levels where the price stops several times are like a groove across your lawn that keeps catching things that roll into it. So too with support levels for any given commodity or stock. They're like price catchers that hold the price there for a while.
Given the future of BTC and crypto in general, any pull-back is always a sound buying opportunity. Just nibble away at it. In a year or two, you'll be glad you did.