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BTC and the crypto market is again in correction mode
This was to be expected as we discussed in the last post. Although BTC has now reached the trend line predicting a bottom for the market in general, we can see that the market always went down a bit further from this area as you can see here:
It is then logical to assume that BTC will be trading in this range for the next months:
With the start of the full moon phase some days ago, BTC is again heading for a correction (and once again confirming this esoteric relationship). This is pretty harsh, considering that we still didn't really get a bear rally (only about a 24% rally - bear rallies go often to 50%+). This is obviously the strongest correction we have seen for the crypto markets on average for a such extended period of time. It must be hard for people being in the red now and still seeing the market go lower. But the point of this post is to show you that it would irrational to assume that prices will just keep falling. Instead, we can expect the bottom to set in over the next few months.
Currently this is the close up picture:
I can see several scenarios for the mid term price development. One, e.g., is a descending channel which often happens. We could easily go into the 15ks before reversing course.
Another example is an ascending channel:
Both scenarios have a bottom somewhere between 15k-16k. When the markets are falling (for months) everyone thinks it will continue to fall. But this is irrational. We know that this does not happen. With Bitcoin being completely oversold on basically all metrics currently it is still possible for another ~20% correction, but TA strongly suggests a bottom in this range.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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