Recently I made a shorter timeframe analysis on Bitcoin and the bullish channel it was trading in.
Although a minor reversal occurred, bears took the overhand and pushed the price down. Once the price got below the channel, all hell broke loose and a massive flush downward followed.
A lot of damage has been done in the last 24 hours. All the patterns which we were following for weeks have been destroyed and there's no clear indication of what will happen next.
Bitcoin is currently trading on the last line of defence for the bulls. This dynamic support line connects the Corona crash from March 2020 to the Summer 2021 lows with the current price. If we see a weekly close below this support we could face bearish market conditions for several weeks or months. First target for a bearish break out would be the summer lows around 30k, potentially lower if we enter a fully fledged bear market.
However, the macro bull-trend is still intact. 30-40 percent drops are not uncommon in Bitcoin's history. If anything, there occurrences are quite 'bullish' when they happen in bull-cycles since they reset overbought market conditions and flush out over-leveraged traders.
All in all, there's no clear saying as where Bitcoin will go now. This week's close will be of massive importance on the overall direction of the market. Since we're in very oversold conditions currently, there's a decent chance for a big bounce in the coming 2-3 days.
In addition, everything will depend on what the stock market and the FED will do. If stocks continue their bearish rally on FED interest rate hikes and bad corona news, there's a decent chance that more red days will follow.
do you think its a good time to buy alts in discount?
FieryTrading
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@consciousBook57339, Depends on your conviction of BTC in the long run. For a quick swing trade today might be a good opportunity since alts are prone to correct after such a heavy sell off. For longer term investing you might want to wait for BTC to confirm the bullish trend again.
consciousBook57339
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@FieryTrading, thanks for precious comment. but do you expect BTC to fall again in the next hours or it will continue going up at leat up to 50k?
FieryTrading
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@consciousBook57339, I don't know what to expect. Most likely scenario would be a bullish "correction", but hard to say how far this correction will go before going down again.
This is a price pump trick of the market makers, we must calm down and buy BTC immediately at this point, without delay. BTC will return to 53,000 USDT with a coming 36h period.
sztywnywariat
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for the whole 2021 we have been trading between 30k and 60k(+/-). I would not be surprised if the bull market returned somewhere in 2022.