Today, almost every cryptocurrency experienced a big bearish movement with around 15-20% loss.
Let's see if this price action gives us hints for the near future development of Bitcoin, which many other cryptocurrencies will probably follow according to experiences.
First of all, it's a bearish sign that Bitcoins price crossed the level of the last two lows and went even further down:
The price bounced off 11.000 and now moves between 11.300 - 12.300.
In these levels it's hard to predict what happens next, but there are a few more signs that make me believe the price could get much lower, even lower than the Christmas low of 10.600:
Two different trendlines could be tested within the correction, whereas the first will stop the price at about 8.500.
The worst case scenario for all hodlers would be a break through the second trendline which would carry the price under 6.500, but due to indicators even breaking through the first trendline seems very unlikely. (That's the point main stream media would talk about the burst of the ''bubble''.)
Another rarely considered sign for more berarish movement is the correlation to Ether. The graph clearly shows a higher low, from where it could rise above the last high. In that case Ethereum continues rising and Bitcoin falls even further.
The big drop of cryptocurrencies today didn't have essential influence on the comparison chart, making me believe similar development as in April to July last year could happen.
All these things make me want to wait before deciding any mid- and longer-term trades.
What do you think about today's price activity and the future development? Please let me know! :)
