What a day!
Blood bath all around hey!
If you are new to the crypto realm, then you've just had a taste of the volatility of this market. Welcome to Cryptocurrencies.
If you feel like panic selling, I suggest taking a second and taking a deep breathe. Calm the Farm eh?
If you sell, you will actually lock in your losses in your local currency.
If you believe in the blockchain and what it can do for this world, then i suggest buckle up and close your eyes for a few days or weeks. Things will turn around if you have faith in the technology and so does the rest of the community.
Lets have a look at the charts.
1D
Bitcoin did bounce up over night (my time) but during the day it took a beating. This was probably triggered by the news out of South Korea.
It did recover some of that loss, as indicated by the wick that extends below the trend line.
Volume as well hasn't been as huge as the first pull back from its ATH, which could mean just some stop losses and panic sellers are selling on FUD.
4Hr
Looking at the 4hr charts, i'm not sure if you can see on my chart but after the quick plunge today, the volume was actually higher when it bounced back up which indicates there were more buyers waiting for cheaper prices to get into the market. I think there is a fair bit of money waiting on the side lines to get in.
The RSI has come close to touching the oversold line now a few times now, but not actually into the oversold territory yet, so we could see a nother push downwards, really breaking this trendline.
1Hr
On the 1hr charts, the MACD has actually started to diverge from the price which is a indicator for a change in direction of a trend.
Going back to the 1D chart.
I've removed the trendline and i thikn a pennant is forming with bitcoin.
Bitcoin over the next week could climb up to test the upper line of the pennant before falling back down and testing the bottom line.
Bitcoin has also come back to the 50 EMA, which has been a good indicator of a correction, however it is still quite far away from the 200 EMA, which is a little concerning because it has to eventually, either through side ways consolidation (time) or further price drops.
Lets hope this Pennant continues to form and there is a break out upwards and onto ATH!!
Good luck.
Hodl strong.
