Tabtrader
Over the past few days the cryptocurrency market witness a massive correct after bitcoin claimed a new all time high. Alot of traders where caught in the market crash as the proposed $52000 region of support could not hold, flushing most the LONG call leverages on various exchanges with liquidations in billions of dollars. Although bitcoin has been trying to reclaim the $50000 region but the bears are way too strong to allow the bulls get their way.
The market has been heated up lately and needs to cool off a bit especially with the year coming to an end and a lot of traders and businesses needs to balance thier books before going for vacation hence the massive sell off, which we may see come to a halt/ reduce after the festive period as funds needed for the holidays is already secure in fiat and traders rebalance thier portfolios for the new year.
Diving into the chart on the week's view you see bitcoin at a critical level on the Fibonacci retracement indicator it just broke down a little bit below the 0.618 fib which corresponded to the $46500 price level which has been the area of support over the past few days if bitcoin fails to hold it the next support according to the chart falls at 41270 which was the initial price bitcoin bounced from on the day of the market crash about 10 days ago which is at the 0.5 fib ratio.
In conclusions
Right now bitcoin is trading at an uncharted region and we may see a new market circle come to play... If you don't have the stomach for volatility I will suggest you seat at the side line and allow the market finds its bearing for now trade carefully and if u are on futures don't forget to use stop loss.
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