Prices seem to have been stabilizing recently, catching onto a piece of support as shown by the trendline as it explodes out as a hopeful sign of optimism.
However, much like an earlier example below, the price correction in my opinion is yet to be over. Consecutive blows to the market has incited fear, uncertainty and doubt within a market full of immature investors much like how in November/December, prices were skyrocketing creating a "fear of missing out" environment. As a market rooted deeply in emotion and speculation, this downward spiral is far from over.
Here are some things that I have noticed:
We are setting up for a major double bottom scenario looking at the weekly setting indicating that whatever bullish activity we see right now could be a trap.
1.Prices as of right now are far from where we started from. In equivalent terms, we are exactly where we were back in late November when the MAJORITY of the hype started. Even though we can think as if we have purged a significant chunk of hype from the market, there are still remnants of it as a result of Average Joes putting in money prior to this time period. In fact, all of 2017 was a major bullish run, with emotions running strong every step of the way. Now that the reversal is happening, I would look for spots in which the price corresponds to a period of time in which more seasoned veterans who have endured swings like this occupy the majority of the crypto space. One can think about this as a pseudo return to sanity where prices are dropped to a point that people no longer think about crypto as a means to make money but a point where people think what the genuine value of it is.
I can't say for certain where this point is going to be but I have a feeling it is below the point of resistance that we currently hide behind at the moment.
