A Common Bitcoin correction or something more?
Updated
Bitcoin has had a few people panicing recently with it's price action and how it's behaving. However if we take a step back and analyse what's going in the fact of the matter is that its acting rather normal and going through most of the routine price action it usually does. Pullbacks are common place in Bitcoin and crypto currency in general and as it stands right now we are experiencing a very common correction.
If it stays in the realm of "common" or around the average of a 25-30% correction, this would end around the $55,000 area. This correction would coincide close to the 9 day EMA as well as the anchored VWAP from the ETF launch. While a deeper correction is certainly possibly, I find it more probable that price starts moving in a very choppy or sideways pattern when summer comes around as opposed to parabolic moves like we have seen. Of course, this is not to see we won't advance higher. I think in the long term we will move much higher but I believe it will take time to get there.
The biggest catalyst for Bitcoin right now is the approval of the ETF's, these have brought in an influx in cash and will most likely continue to attract investors with Bitcoin being one of the best performing asset classes at the present moment.
A few technical's that I like:
I like that RSI is still overall in an uptrend and we haven't seen any divergences on the larger time frames
MACD has continued to show resilience and has been in a steady uptrend. While it did print some minor weakness that has meant we are in for some consolidation, which is to be expected and quite frankly, needed.
Bottom line: This "support" zone needs to hold. If these area's hold and buyer's regain control I expect Bitcoin to go much higher in the coming months.
Cheers,
TCD
If it stays in the realm of "common" or around the average of a 25-30% correction, this would end around the $55,000 area. This correction would coincide close to the 9 day EMA as well as the anchored VWAP from the ETF launch. While a deeper correction is certainly possibly, I find it more probable that price starts moving in a very choppy or sideways pattern when summer comes around as opposed to parabolic moves like we have seen. Of course, this is not to see we won't advance higher. I think in the long term we will move much higher but I believe it will take time to get there.
The biggest catalyst for Bitcoin right now is the approval of the ETF's, these have brought in an influx in cash and will most likely continue to attract investors with Bitcoin being one of the best performing asset classes at the present moment.
A few technical's that I like:
I like that RSI is still overall in an uptrend and we haven't seen any divergences on the larger time frames
MACD has continued to show resilience and has been in a steady uptrend. While it did print some minor weakness that has meant we are in for some consolidation, which is to be expected and quite frankly, needed.
Bottom line: This "support" zone needs to hold. If these area's hold and buyer's regain control I expect Bitcoin to go much higher in the coming months.
Cheers,
TCD
Note
A nice move off the top of the support zone. If we keep going higher I would think buyers are in control again, otherwise I am looking for a compression type pattern over the next couple days to ratify that this has happenedNote
Well, this is playing out right on schedule at the moment. Lets see what happens over the weekendNote
Pretty damn close with my arrows - At this point, it's a buy-and-hold type situation to see what transpires. The next targets aren't until 100k+ if we start breaking the ATH again.
Opinions on Chart's, not financial advice.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.