A recipe for a correction?
The 4h chart of bitcoin shows a rising wedge and an overbought bearish divergence; both are bearish indicators and when simultaneously present, increase the likelihood for a correction. However, bitcoin is currently parabolic and in uncharted territory making a price prediction solely based on technical analyses extremely difficult and irrational. Trade with caution.
The best thing to do at this point is to dollar cost average especially if you’re new to bitcoin. Many traders believe a correction is impending and some popular traders here are using Elliot waves or overlaying past charts from the last bull run to make price predictions. It should be obvious to most that there are many financial institutions, corporations and family offices buying bitcoin now as a long-term investment and/or store of value, which will make up the majority of the buying pressure taking us to the peak of the next bull run. The last bull runs were dominated by retail traders. The rules of the game have changed and will need to be learnt.
Happy 2021, the year of the metal bull and bitcoin.
The best thing to do at this point is to dollar cost average especially if you’re new to bitcoin. Many traders believe a correction is impending and some popular traders here are using Elliot waves or overlaying past charts from the last bull run to make price predictions. It should be obvious to most that there are many financial institutions, corporations and family offices buying bitcoin now as a long-term investment and/or store of value, which will make up the majority of the buying pressure taking us to the peak of the next bull run. The last bull runs were dominated by retail traders. The rules of the game have changed and will need to be learnt.
Happy 2021, the year of the metal bull and bitcoin.
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