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If you look at the chart, you can see that Bitcoin -0.68% had a small correction, it only lasted for a day... This is normal, as we move up, or down, there will always be corrections, retrace, rebound, retest, etc.
The price of Bitcoin -0.68% , or any other cryptocurrency, will always fluctuate, there are ups and down, always, what we really need is to focus on the trend. Are we in an uptrend or a downtrend?
Bitcoin -0.68% broke the downtrend that started in December on the 20th April, we are now in bull mode and things are looking good.
Here is a signal that I was waiting for on the daily chart:
- Notice how the SMA20 (Green) line crossed the SMA50 (Blue) line. This is a bullish signal and took quite a while to materialize after Bitcoin -0.68% started to recover.
- We first hit bottom at $6,000, on early February. This month the bottom was $6,425.
- RSI is above 60.
- MACD , RSI , OBV, DMI and STOCH are all in the bullish zone on this time frame.
- What we need now is for the Bitcoin -0.68% price to cross the SMA200 (Brown) line, in order to set up a very strong support if Bitcoin -0.68% wants to keep on moving up.
Please, let me keep you updated about Bitcoin! :D
Now, what happens if Bitcoin -0.68% crashes?
The more that Bitcoin -0.68% goes up, the greater the fear from a few about Bitcoin -0.68% crashing.
Can Bitcoin -0.68% crash, yes. Do we care? Yes and no.
Ok, buy why, how does that work?
If Bitcoin -0.68% gets dumped, now that Mt.Gox BTCs -3.33% are moving, nothing really happens. If it goes down we see it go down, we wait, we analyze, we keep on trading and finally move up.
Just as nothing can go up forever in a straight line, in these markets, the same happens the other way around. Nothing can go down forever... well maybe yes, but that's not the point, if Bitcoin -0.68% goes down, just like it did the first four months of this year, it will reach a point where we will start to buy and move up again.
If Bitcoin -0.68% were to go down now, we simply wait and we adapt our next move based on that. We simply adapt. For now, the Altcoins market is booming and Bitcoin -0.68% as well. So we enjoy this moment and profit as much as you can...