There's been a lot of doom & gloom & certainly for good reason. It has been a brutal month & a half. However, I don't see this as "the end of Bitcoin" by a long shot. This is simply a sharp & needed consolidation after an aggressive bull run. Bears are in the process of exhausting their ammo & we will start to see bulls push back once price gets too good to ignore - which we're nearing.
In my view we basically have a big bear flag playing out to completion. Even though it doesn't look like it, the initial pullback & the bear flag target are the same distance. It's kind of an optical illusion but measure it & you'll see. It's also consolidating like a falling wedge & as long as support holds I expect it to perform like one. It can pop through the support briefly & may do so as we get closer to the apex & the last of the sellers is shaken out. We have bullish divergence which is a leading indicator that there is some bullishness under the surface, & we also see volume increase which is needed for reversal. RSI says oversold - we need the trend to break before we can move back up but you can see it's quickly consolidating a point. The target for the bear flag & wedge apex is about at the primary trend line from the past year before big run up in the fall. At present I see this bottoming out around 6300, & if that is the case the fib lines line up perfectly to push back up to key previous levels.
We are pretty close to "capitulation," as you can tell by twitter & many of the ideas/comments coming out. Do what you need to do, but in my view, if you can't hang on through a correction like this you should get out of the markets - especially crypto. Selling at these levels is the equivalent of buying at the top. The risk vs reward is vastly in your favor to buy now if you can, or hang on for a reversal. Big money loves the capitulation because they are sitting there at the bottom waiting to gobble up as many coins as they can for cheap.
Crypto just had a year where more people became exposed to it & joined the market than ever before. New products are coming out & companies are forming all the time & it's easier than ever to buy & store bitcoin. This correction doesn't change all of the positive things that are happening. With the good we must take the bad & grit our teeth during corrections like this - but I'm still extremely bullish about what's next. Keep a cool head. Don't make impulsive, emotional decisions. This thing will turn around & 2018 will be another big year as adoption reaches more people than ever in all corners of the world. Long live Bitcoin!
In my view we basically have a big bear flag playing out to completion. Even though it doesn't look like it, the initial pullback & the bear flag target are the same distance. It's kind of an optical illusion but measure it & you'll see. It's also consolidating like a falling wedge & as long as support holds I expect it to perform like one. It can pop through the support briefly & may do so as we get closer to the apex & the last of the sellers is shaken out. We have bullish divergence which is a leading indicator that there is some bullishness under the surface, & we also see volume increase which is needed for reversal. RSI says oversold - we need the trend to break before we can move back up but you can see it's quickly consolidating a point. The target for the bear flag & wedge apex is about at the primary trend line from the past year before big run up in the fall. At present I see this bottoming out around 6300, & if that is the case the fib lines line up perfectly to push back up to key previous levels.
We are pretty close to "capitulation," as you can tell by twitter & many of the ideas/comments coming out. Do what you need to do, but in my view, if you can't hang on through a correction like this you should get out of the markets - especially crypto. Selling at these levels is the equivalent of buying at the top. The risk vs reward is vastly in your favor to buy now if you can, or hang on for a reversal. Big money loves the capitulation because they are sitting there at the bottom waiting to gobble up as many coins as they can for cheap.
Crypto just had a year where more people became exposed to it & joined the market than ever before. New products are coming out & companies are forming all the time & it's easier than ever to buy & store bitcoin. This correction doesn't change all of the positive things that are happening. With the good we must take the bad & grit our teeth during corrections like this - but I'm still extremely bullish about what's next. Keep a cool head. Don't make impulsive, emotional decisions. This thing will turn around & 2018 will be another big year as adoption reaches more people than ever in all corners of the world. Long live Bitcoin!
