Spotted potential fractal.
Left = DJI Flash crash in 2010. I remember how it felt, I was trading it.
Recovery after vicious bear market, all the news was bearish, people calling for 5k (familiar?). The Dow dumped 1,000 points in a 15 min candle. The resulting whipsaw took out a previous low and many analysts called for resumption of bear market.
BTC on the right (4hr). BTC has broken its uptrend, it is now officially in start of a downtrend. However, how low will it go?
Maybe this is it, bounce from here. Unlikely, people tend to panic sell rises after a dump like that. However the dump looks very ABC like (i.e. corrective, not 1-2-3-4-5 suggesting impulsing move down).
Comparing the fractals left & right we get a possible path for BTC. The 50-day MA is below us at about 8200, it should provide support if we get that low. The 200-MA 4-hr is right at the price, but BTC feels like it wants to go lower.
What Im watching for: a levelling out of the pace of selling, e.g. more bearishness but less impulsive moves. When we see selling exhausted either by price, bull divergence, or volume, its time to go long.
An acceleration of selling and formation of a clear bear flag = time to short.
Left = DJI Flash crash in 2010. I remember how it felt, I was trading it.
Recovery after vicious bear market, all the news was bearish, people calling for 5k (familiar?). The Dow dumped 1,000 points in a 15 min candle. The resulting whipsaw took out a previous low and many analysts called for resumption of bear market.
BTC on the right (4hr). BTC has broken its uptrend, it is now officially in start of a downtrend. However, how low will it go?
Maybe this is it, bounce from here. Unlikely, people tend to panic sell rises after a dump like that. However the dump looks very ABC like (i.e. corrective, not 1-2-3-4-5 suggesting impulsing move down).
Comparing the fractals left & right we get a possible path for BTC. The 50-day MA is below us at about 8200, it should provide support if we get that low. The 200-MA 4-hr is right at the price, but BTC feels like it wants to go lower.
What Im watching for: a levelling out of the pace of selling, e.g. more bearishness but less impulsive moves. When we see selling exhausted either by price, bull divergence, or volume, its time to go long.
An acceleration of selling and formation of a clear bear flag = time to short.
