Bitcoin price has crashed and yes it was terrible. An over-leveraged derivatives market that was already on shaky ground just collapsed and liquidated 3 billion in a matter of hours. This cascade has happened several times now, and may be a stark warning to the type of volatility we'd expect from an over-saturated, heavily leveraged Bitcoin.
Either way, the price damage was immediately scooped up. The falling wedge pattern we are now in is a bullish pattern, once the price breaks above the pattern, we may call this confirmed. We look at the volume of the pivot point, which was huge. This tells us that capitulation may have occurred here, as Bitcoin moved from weak hands back into strong hands.
The price was also strongly rejected. This creates the long candlewick we see at the bottom. Another sign that we may have our pivot point, a potential turn-around. We may not be in for a strong V-shaped recovery, as this could go sideways during the vast accumulation needed. We will have to wait and see. Either way, BTC price is a great buy opportunity at this point.
Finally, we see our Stochastics has entered the white area and was oversold, at which point the blue line retraced upwards, crossing over the red line, and back into the purple zone. As an indicator, this is a buy trigger.
In the long run, Bitcoin is absolutely in a Bull Run, and in the short term, we may have shook off the bearish grip on the market, but we will have to wait for confirmation first.
What the Bear in me sees:
Selling pressure has increased steadily, as buying pressure has broken down. We saw a high % of whales exit the market after just a short 3 months, selling their Bitcoin, which may mean that the longer term holders of Bitcoin, which have obviously shrunk in number, is a bearish sign. This market is now potentially controlled by new money, and we may see a repeat of this before it gets better.
Take note of the 50 Day MA, which is on a collision course for the 100MA, a truly bearish sign if crossed, and the market would remain in the bearish zone for weeks to months. If price does not accumulate and rise, we will drop to the next support zone, which we will see intersecting with the ATH of 2017.
If this scenario plays out, we can expect up to an 80% dip of Bitcoin from the high, meaning a price of $12,800 could be possible.
However, this just works in our favor, as this extends the bull run, the bearish pattern is only momentary. We can look to history, and see we survived this very pattern already (2013-2014) and we survived. We will do it again.
Either way, the price damage was immediately scooped up. The falling wedge pattern we are now in is a bullish pattern, once the price breaks above the pattern, we may call this confirmed. We look at the volume of the pivot point, which was huge. This tells us that capitulation may have occurred here, as Bitcoin moved from weak hands back into strong hands.
The price was also strongly rejected. This creates the long candlewick we see at the bottom. Another sign that we may have our pivot point, a potential turn-around. We may not be in for a strong V-shaped recovery, as this could go sideways during the vast accumulation needed. We will have to wait and see. Either way, BTC price is a great buy opportunity at this point.
Finally, we see our Stochastics has entered the white area and was oversold, at which point the blue line retraced upwards, crossing over the red line, and back into the purple zone. As an indicator, this is a buy trigger.
In the long run, Bitcoin is absolutely in a Bull Run, and in the short term, we may have shook off the bearish grip on the market, but we will have to wait for confirmation first.
What the Bear in me sees:
Selling pressure has increased steadily, as buying pressure has broken down. We saw a high % of whales exit the market after just a short 3 months, selling their Bitcoin, which may mean that the longer term holders of Bitcoin, which have obviously shrunk in number, is a bearish sign. This market is now potentially controlled by new money, and we may see a repeat of this before it gets better.
Take note of the 50 Day MA, which is on a collision course for the 100MA, a truly bearish sign if crossed, and the market would remain in the bearish zone for weeks to months. If price does not accumulate and rise, we will drop to the next support zone, which we will see intersecting with the ATH of 2017.
If this scenario plays out, we can expect up to an 80% dip of Bitcoin from the high, meaning a price of $12,800 could be possible.
However, this just works in our favor, as this extends the bull run, the bearish pattern is only momentary. We can look to history, and see we survived this very pattern already (2013-2014) and we survived. We will do it again.
Comment:
BITCOIN HASHRATE Has now DROPPED again to almost a new low. This is.. No good! Expect some bearish action coming up.
Comment:
Keep eyes on a breakout - I want to warn you that this weekend could be a false positive: AKA A Bull trap
