If you have seen my updated idea on BTC yesterday, I have warned you before BTC dropped below $8800.
If you think that the dip is over, let me tell you it is very likely that another dip is coming. From my very first post on TA, I have always expected BTC to drop back to at least to $8000 so a new bull run can begin. The whales certainly played it out nicely and fooled most of traders. In fact, when BTC went above the top of , many of us thought the nightmare was over and a new bull run has begun. However, the was only broken on the linear scale. On the log scale the has never been broken. In fact, when BTC touches the top of the on the log scale, it quickly got rejected, forming a and BTC was reversed in no time.
So what is going to happen next? BTC is at this exact moment trying to get back above the (linear scale). You might ask why I used the linear scale when the log scale seems to be more accurate? Well, this is something I learnt from other traders recently, log scale works better in a larger time frame whereas linear scale works better in a shorter time frame. In fact, if you look closely at the on a linear scale, you can see there is a huge sell wall stopping the bulls. On many occasions when bulls finally pushed BTC above the top , it got hammered back below the straight away.
By looking at the bulls are losing momentum. And the is becoming more obvious. With the FUD on SEC, Binance hack & Mt Gox, I doubt the bulls have the strength to win over bears.
Also, note the similarities between now and 2 Feb - 6 Feb. Be prepared for the worst.
This is not a financial advice, please trade cautiously.