Hard to believe but looks like recent Bitcoin (BTC) euphoria is all over. People who bought Bitcoin around $20,000, right at its peak, must be really disappointed the way Bitcoin price crashed afterwards. Currently, BTC price is hovering less than half the price ~ $8760 of its recent peak.
Google’s worldwide Bitcoin search trends also paint a similar picture. Worldwide Bitcoin and other major cryptocurrencies searches are at its lowest and still falling. Interesting correlation is Bitcoin price usually follows Bitcoin’s global search hits as hysteria around Bitcoin price pushes new investors in the crypto field. Generally speaking, novice entrants are the one who suffer the most in any hyped and overbought market. You can check Bitcoin and other cryptocurrencies live worldwide search trends here
With gradually decreasing interest it seems market is stabilizing but could it be a sign that Bitcoin bulls are exhausted and its time for an another market correction. If that happens it will be equivalent to another Bitcoin price crash.
Below are different possibilities that might play out depending on how Bitcoin price breaks different support and resistance levels. This chart is only valid once the conditions indicated are met.
We have three possibilities one of which will work out (again once the condition is met)
1) The first possibility is finding support on the March 2017 uptrend line which is also the end of the cloud as well as a Fib level.
2) The second possibility is the double bottom , basically touching 6K which was the lowest price reached since the exponential growth to 20K.
3) The third possibility is the descending broadening wedge coming into play, which will place us at a low of around $3800 to $4000. This is a previous support/resistance region. This will be a completely healthy correction for the market and will reset the overbought monthly RSI .
Also, a pennant is forming but too early to tell as its halfway. Pennants are continuation patterns, so once it breaks Bitcoin price will be dropping down. (can be seen in the 15 min frame)
if 2) breaks up, then option 1) will come to play.
if 2) drops down then we will be heading to 9.2k
There are still lots of IFs and BUTs, however, there are strong signals that Bitcoin price might get a major correction once again.
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This article is published with analysis contributed by DCFreak
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Disclaimer: Cryptocurrencies investments are full of speculative and market risks. This article is only for information purposes and not an investment advice. Please conduct your own thorough research before investing.