Just when it seemed like Bitcoin had entered a new trading range and was heading to new all-time highs, BTC's advance was stopped by some selling action, and the cryptocurrency was pushed back to 200 DMA. On Tuesday, Bitcoin saw a ~20% drop in price - from ~53k to ~43k. The candle looked damn scary. In fact, Bitcoin wasn't pushing to higher levels exponentially. There had been solid consolidation prior to the decline at 200 DMA and the chart looked bullish. RSI was well contained, shorts were well-contained. Things seemed great.
However, the joy wasn't meant to last long. Tuesday's correction has brought Bitcoin back to $46k and it is sitting just at 200 DMA. A few days ago, I read an article that said that leveraged trades were not happening in Bitcoin anymore and that volatility should be well contained going forward. Tuesday's action shows how that volatility is here to stay and downsides can be precipitous.
For now, the saving grace is that BTC is still above 200 DMA, which has been strong support in the past and also in recent months. RSI is now even lower than it was a couple of weeks ago when Bitcoin was around the same level. However, I do think that 200 DMA will be tested going forward and sellers will try to break it. Near term, I feel that this correction will last longer than 2 days and if 200 DMA support gets broken then it will take time to head higher. RSI is trending downwards which is another negative as far as momentum is concerned.
I feel that on any given day, there should be a buy order to buy Bitcoin at a price 15% lower than that moment's market price, in a bull market of course. One never knows when one will get lucky. Things are never certain in this market. Just like a 20% correction, Bitcoin can easily see a 20% advance if leveraged shorts get taken out. However, as time passes, things are getting tight for year-end predictions. 3.5 months to go for Bitcoin to double if it has to hit 100k by year-end - a level, many believe Bitcoin will achieve this year. Let's hope it does and the correction that happened will not last any longer than it has.
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Great analysis @karamyog your chart is quite cool and it shows full detail of price action and the movement that is about to happen is very certain and if we are not careful or if we neglect that fact we may tend to witness the unexpected in the market put this require act if faith to hold because retracement will surely happen but it won't fall deep, maybe scary but it is retracing for a better cause of action in the market.
The price of Bitcoin retraced to $46k now judging by what happened on Tuesday where it fell to 44k and battled throughout Wednesday to get to 46k and that's quite encouraging but all we have to know is the candle forming today will determine or confirm the movement of the market price if it is going to be a long bullish trend or bearish movement.
Why I said so is because we don't have to neglect the convergence and divergence that is occurring or occured in the market which we are not certain on the power or force which price will go down or retrace to. Also checking the same pattern that occured in May ending and July ending we don't know how long this retracement will be but all I'm sure is that it won't fall more than 44k.
All I can say is before September runs out Bitcoin prince level will reach $60k. Maybe the the 100k will happen but I'm not seeing the possibility of that this year or anytime soon unless there will be a great price influence that may occur but I doubt that.
Well no one say 100k is surely going to happen this year. It's a wishlist for everyone. Everyone is trying to make the best guess possible. Let's hope bullish momentum continues.
The dip on Tuesday came quite has a shock as BTC lost a lot. Great to see gradually recovering. As for 100k prediction, still look quite possible. I still believe we are still bullish and could reach that height
I too think 100k is doable this year. Don't think we are recovering as we are just about starting to consolidate at 200 dma. Hope this correction doesn't extend.
Yeah. Learnt to expect anything from this market. It could shoot up anytime especially when the good news comes in. Hope it doesn't too
I hope this correction gets recovered soon.
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