I believe we are currently in the "hope" phase of the crash pattern. This hope phase could continue on this leg as high as $10,200 or slightly over. My belief comes from the obvious signs on the chart, but also a few fundamental factors. First, no new money is coming into the market - the tether printer has been quiet and has dropped off whereas has gone crazy. Furthermore, whenever BTC booms alts sink - this means money is just being moved around internal to the market, but not being injected into the market from fiat (which would mean alts would not bleed as much).
Soon we can see a second collapse. This collapse could go as low as 6K although many traders are calling a bounce at $7,200. Either way we will see a run at least to previous lows ($8,500-$9,200) like we are seeing now. If these lows are not broken we will see a final collapse into the "despair" phase, at which point we will likely begin consolidating for a true bull season. Note that the prices and patterns shown on my chart are approximate. I do not try to predict timeframes nor exact prices, simply the overall market pattern.
In short, if you are trading in this market these are the key levels to look out for, in order:
$12K on this run: Bear trend officially broken, all these predictions are out the window.
$10,200 on this run: Likely maximum possible level for bitcoin .
$6,000-$7,200: Next bounce level, due to strong support from previous bounce and plenty of buyers thinking it must be absolute bottom.
$8,500-$9,200: Likely maximum price level after this bounce.
$4,000-$5,500: True despair prices.
I appreciate any feedback - especially contrarian feedback. It's always important to have your views and opinions challenged, ESPECIALLY when analyzing the market! Thanks, and happy trading!
If you have balls of steel you could play the bounce here, but you best have a tight stop, recognizing that the pink arrow is an equally likely possibility
Don't fall to FOMO (unless you day trade and already noticed this and entered a long at 8,900, in which case congrats for recognizing the divergence). I personally don't have the time to baby the charts and monitor the position, so I'm staying out of this one.
bitfinex only allowing new customers with a minimum of $10k usd, no new fake usdt to prop up prices, tax season FORCING the biggest whales to liquidate and leave the market...especially in "bitcoin friendly japan" (note the 55% tax on big earners after $375k usd)
even with no fud whatsoever now, the market is barely limping along, on ever decreasing volume. $20k btc was a dream. $3.50 ripple, $1600 eth, $4000 bch...we wont see those numbers again for years.
I'm sure people said the same thing when bitcoin crashed from $12 to $2, or the 2014 crash. It's really impossible to say.