As the chart shows, there are a few possible scenarios that may play out in the coming days & weeks.
IMHO, strong support is at 0.382 / $5k. There's little doubt that BTCUSD has been over-extended. In this process, we've seen some bullish indicators, but recently there're some bearish divergence. Wave 5 is also too long.
As I mentioned before, BTC is growing exponentially, but exponential growth doesn't mean correction-free growth. In fact, crash could also be exponential. Minor adjustments like yesterday's are tremors before the quake.
Now too many BTC supporters are too euphoric.
Full disclosure: I've been unable to predict the price movements of BTC using TA. Let's not pretend that it's a pure demand-and-supply coin. If the majority think it's going to drop, it'll double in a week (and then when small investors rush in the manipulators cash out).
IMHO, strong support is at 0.382 / $5k. There's little doubt that BTCUSD has been over-extended. In this process, we've seen some bullish indicators, but recently there're some bearish divergence. Wave 5 is also too long.
As I mentioned before, BTC is growing exponentially, but exponential growth doesn't mean correction-free growth. In fact, crash could also be exponential. Minor adjustments like yesterday's are tremors before the quake.
Now too many BTC supporters are too euphoric.
Full disclosure: I've been unable to predict the price movements of BTC using TA. Let's not pretend that it's a pure demand-and-supply coin. If the majority think it's going to drop, it'll double in a week (and then when small investors rush in the manipulators cash out).
