Bearish divergence gave a signal that the market could reverse from 4900.00 level and start correction movement. RSI confirmed price reversal in the overbought zone. MACD histogram confirms downward movement. We have good signals confirming that the market can drop lower. Since the beginning of 2016 year, the market has passed through 5 correction movements. Every time the market bounced from SMA20. After that we got strong upward movements and new highs. Now we have the 6th correction. Like before, the market is going to reach the zone at SMA20. Like before, we have to expect for price reversal with further upward movement and new high. If you want to get cheap bitcoins, the zone between 3200.00 and 2800.00 levels is good for buying. It's possible to open long positions without any reversal signals, just don't invest all money in 1 trade. If the market drops below this zone, the next zone for buying will be at SMA50. But falling to 2000.00-1600.00 zone seems impossible now.
$3000 will likely be a big test here.
$2500 could also be a test given that fundamentals in China are magnifying the market right now.
You say that falling to $2000 seems impossible right now.
You point out that SMA20 has not been broken during the 5 corrections this year.
But SMA20 needs to be broken at some point.
How many times can it bounce? ... 5? 6? 8? 13?
You cannot have a compounding gain of 50% every 2 months for the indefinite future.
It may indeed bounce again and go to $8000.
But it does need to break it at some point.
ncx
⋅
wow that was a drop, personally before i do anything i wait until the situation clarifies. If the chinese investors don't invest again, and most of them probably won't, because it's forbidden now it seems, how should the price raise to recent levels in the near future? millions are lost
DrStein
⋅
@ncx, I agree with you. I am new to crypto but my logic says that the market will fall even more. China is a big player in the BTC game and afterall the crypto boom of 2017 was a bubble but nobody wanted to admit it.
DLavrov why do you believe that the BTC price will not fall below 2000? Thanks in advance.
ncx
⋅
@DrStein, there's a strong support zone around 3000
bonnzer
⋅
@DrStein, look at statistics. cryptocoincharts.info/markets/info China exchanges are not on the top by trading volume. Some of them (BTCC and viaBTC for example) even not in the middle. Other world bigger than China, so even one big player cannot destroy BTC ) This is just a FUD and price shouldn't drop under $3000. Too much resistance.
geodun
⋅
Thanks for sharing your insights. Very helpful!
swefaz
⋅
I lost all my money
CRair
⋅
@swefaz, don´t sell, wait for 1 or 2 months and for sure you can back money to your pocket.
LooN3Y
⋅
@swefaz, U can't lose your money if you don't sell your coins ...
$2500 could also be a test given that fundamentals in China are magnifying the market right now.
You say that falling to $2000 seems impossible right now.
You point out that SMA20 has not been broken during the 5 corrections this year.
But SMA20 needs to be broken at some point.
How many times can it bounce? ... 5? 6? 8? 13?
You cannot have a compounding gain of 50% every 2 months for the indefinite future.
It may indeed bounce again and go to $8000.
But it does need to break it at some point.