Bitcoin Bounce and Entry Level
Updated
After the euphoria people felt when Bitcoin was rapidly approaching the $5000 mark started to die down, Bitcoin reversed into a short term pullback (see my previous idea as to why it had to be expected). This correction was rather mild and overdue.
Now we are seeing a possible end of the pullback with a bounce around the ~$4450 support level. See the Uptrend Line and the Fibonacci level for as to why this might be the end of the free fall. The Stoch RSI confirms a possible reversal - it shows that Bitcoin is oversold on the 1h chart.
From here I expect another rise to eventually retest the ~$5000 resistance level.
Conclusion: Bitcoin probably finished its correction (for now) - a bounce is very likely.
Now we are seeing a possible end of the pullback with a bounce around the ~$4450 support level. See the Uptrend Line and the Fibonacci level for as to why this might be the end of the free fall. The Stoch RSI confirms a possible reversal - it shows that Bitcoin is oversold on the 1h chart.
From here I expect another rise to eventually retest the ~$5000 resistance level.
Conclusion: Bitcoin probably finished its correction (for now) - a bounce is very likely.
Note
After a clear break of the "Uptrend line 1" Bitcoin is still on its way down. When looking for an entry level you should watch out for a bounce off the "Uptrend line 2". I myself would not go in before that, since we are in a short term downtrend.Keep in mind though that we are still in an uptrend on the 4h chart and this might just be a correction. It is not yet clear if the market is reversing into a longer downtrend.
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