After price reached the 10,000 level, investors are now thinking with logic and not hype and enthusiasm. Reaching this level was the pique of many Bitcoin analysis that I have seen all over TradingView and my Bloomberg Terminal. I believe now the level was hit, a correction is due.
Price recently showed 2 huge doji's, showing major indecision. I believe this is the bulls running out of steam and bears starting to nudge the market into submission.
I am expecting price to correct. On the chart, I have outlined a few possible places for BTC/USD to correct to on the chart.
The correction measurements are:
- Correction move to 8100-7500. Then price will regulate and continue its intended trend.
- Correction move to 5530. I believe this will be the maximum correction the pair will have.
Bare in mind that however strong an instrument is, however compelling it is, however amazing it is performing, it will ALWAYS CORRECT. A correction is not a sign of a change of ideology, it is simply a sign of trading.
Always remember, trade your CHART and not your MIND. If you do this you will be a successful trader always.
In my related ideas, I have posted my previous BTC/USD analysis. If you review both of these analysis together you will see how I have come to this analysis.
I will be updating this analysis as the trade progresses. Leave a like & follow to keep up to date with my analysis.
If it closes above 11,400 then I may be convinced that there could be a legitimate upside leg again. But even then, I will not be buying.
Keeping in mind current scenario BTC is unpredictable. Some thing is happening behind the curtain.
But it will definitely come to 8.5-9k In a couple of days.
But there's something Bitcoin hasn't realized (Rather the traders who trade it), that however well it's performing or however amazing the fundamentals are, it MUST correct to the downside eventually.
I have no idea when it will correct. But what I can say, is that it's not had a chance to breathe since those massive doji's. So it will eventually fall and the longer it spends rallying, the harder it will fall when it finally collapses.
Our first line of resistance is the previous days high at around 11,350.00 (Approx). After this, we will see what happens.
Bare in mind also- last 2 day candles were like the one we see now, so it's important we don't mistake it as significant now as it could end up like yesterdays candle (A huge indecision doji) with absolutely no bull or bear presence at all.
We'll just see. I won't be taking a long yet it's just illogical to my strategy to do so.
Interesting level here for sure- I will just sit on sidelines and wait. :)