This time a bearish divergence gave true reversal signal. The price bounced from 20000.00 resistance level and moved lower. The market was overbought, and such correction movement now it's good for the market and investors. We get a new opportunity to buy on good levels and make much more profit than when the market makes new highs. And now we must have only one question - where the market will be stopped and reversed to the uptrend again? Let's look at the daily chart and spot possible support zones.
The 1st support zone is formed by 13000.00 support level from the hourly time frame and 0.5 Fib level. I don't think that this zone is strong, because it's between SMA20 and SMA50 which are also support lines. I don't like reversals between MAs and I think the price can break this zone and drop lower. But still, we should note this zone and if there is a confirmed reversal signal from it, we'll be ready to open long positions.
The 2nd support zone looks more solid. It's formed by SMA50, 10000.00 support level and 0.618 Fib level. If the price bounces from this zone, the reversal signal will be more reliable. We'll have a deep correction and a very interesting level for buying for long run. Also, RSI and MACD will be able to give good bullish signals. Now they are only moving to important zones for reversals. But what if the price also breaks the 2nd support zone? In such way we should be ready to see the price falling to 8000.00 and SMA100. This zone will be the key one for the market. It will be perfect for buying based on any reversal signals, and it will be important for confirmation the uptrend. If we see falling below SMA100, probably the bears will come to this market and stay here for sometime.
And what do you think about the current market conditions? Please, share your thoughts in commnets.
The drop or mini crash is over. If you did not buy now you have lost and if you sold you will regret it in a day or two. These crashes always result in a meteoric rise by over 150%. Every time the train stops a 100 get off and a 1000 get back on. By end January we will be at $23,000.
@DioNNiS, The MACD is now obviously going down, which is a correction signal. It's too risky to buy now. I would expect MACD drop near or under the 0 axis. If the price stands on the support zone at that time, it will be our golden chance. Just wait and see.
shahzf
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@LeonTung, MACD follows price, price doesn't follow MACD, look for reversals at 50 and 61.5% Fibs. 61.5 looks stronger as it is also 50 SMA level. if it goes below 61.5 then it will be bears market.
cryptobing01
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At all costs do not listen to this guy. He is clueless ! ....bitcoin has broken through the support...he has no idea what he is talking about ...proceed with caution !
panthera88
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@cryptobing01, he is"clueless" but he is a pro in trading view... I've follow him and he is on point most of the time, I do think there could be a bigger bounce,
if it can go to all time highs 3 times in a row, what makes you think that it cannot do the same for lower lows? think about it... just take precautions thats all he is saying, be smart.
cryptobing01
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@AndreaDeLeon, so at this point what are you suggesting is the next low...it seems to have already bounced off of the support and is going higher...probably to 25k to those of us who sold (listening to this guy's advice) we have already lost out on money while hoping to buy lower.
marek001
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@cryptobing01, how? pls do tell? he say'd "he market can drop to 13000.00 and even 10000.00 levels" and you have set buy order 10000? or maybe 10800? im also falowing him not so long, but this few months he was always right,and he always says "long term,short term"
and also you cant follow him blind,you must choose your own sell/buy orders
panthera88
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@cryptobing01, I'm really sorry if you lost money, I know it sucks for sure, I can relate, I bought litecoin at 325, when I saw breaking the support levels, I sold half of what I bought for $280, losing a lot of my profits, BUT the great thing about this market, is that its just getting started, a lot more people are jumping in, it goes up and down, the money I recover selling at 280 I used it to buy at $188 and sold higher to recover lost , learn my lesson, keep studying, will manage my risk much better next time, it can be very unpredictable, keep up with the news, if it ever goes low again, buy using the right precautions! hope that you are able to recover some of your profits!
Stoani
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@cryptobing01, counter with your ideas and insights or just shut up!