As BTC continues to decline we approach some key technical areas. We may anticipate a sharp increase in demand, first at the 78.6 Fib, and below at the 200SMA. As we approach overbought territory on the RSI for the first time since September, we should consider how quickly BTC's price recovered in the past from similar levels. The last two times BTC became oversold on the RSI it rebounded back to ATHs within 20 days and 27 days respectively.
Hey MrHayek...good to see you back, I think you may have a typo: "As we approach overbought territory...", were you meaning "oversold"?
Personally I think the rebound back to ATH will be considerably longer than 20-27 days. This current correction (currently -50%+ from ATH) is more comparable to the two big corrections (crashes) in 2013, and they took 100+ and 800+ days to reach ATH again. Especially if Tether/Bitfinex implodes.
Mrhayek
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@Antipodes78, thanks for the correction, oversold yes. You may be right about the length of time it takes for a recovery, but I have been surprised all too many times by BTC in the past. We must note that BTC traded as low as $5,500 only 10 weeks ago (mid November); seeing those numbers again in the near term is not much of a stretch. The Tether concern is very real as most exchanges rely only on tether for fiat pairs. The leviathan is certainly more active in weaving its tentacles into the crypto space.
Personally I think the rebound back to ATH will be considerably longer than 20-27 days. This current correction (currently -50%+ from ATH) is more comparable to the two big corrections (crashes) in 2013, and they took 100+ and 800+ days to reach ATH again. Especially if Tether/Bitfinex implodes.