Recent $1k+ retracement is normal and very healthy – but it would have been unhealthy if it didn’t happen.
Retracements (blue arrows) at breaching $4k, $5k, $6k & $7k were of the order $500 and all made higher lows. $6k was the exception which sailed through with barely a flicker.
Now that the BTC price has more doubled from the Dec 2018 low, $1k or more temporary retracements are to be expected and although a $1k drop looks alarming on a small scale chart, the percentage correction is completely in line with the previous corrections (as the base BTC price divisor has more than doubled).
The retracement at breaching $8k was actually larger than the recent $9k retracement and did come close to making a lower-low compared to the $7k correction. However the current $9k retracement low (~$8k) is $1k higher than the $8k retracement low (~$7k) – so very healthy. Even a $2k retracement from $9.1k would still have made a higher-low and should have been fine.
The steep parabolic curve and daily RSI up to $8k was unsustainable and would have resulted in a major reversal if it continued.
The healthy retracements at breaching $8k and $9k have considerably flattened the parabolic curve to a level that is more sustainable (in the absence of a bad event, manipulation or panic sales) and the daily RSI is also no longer in the high overbought regions.
Retracements (blue arrows) at breaching $4k, $5k, $6k & $7k were of the order $500 and all made higher lows. $6k was the exception which sailed through with barely a flicker.
Now that the BTC price has more doubled from the Dec 2018 low, $1k or more temporary retracements are to be expected and although a $1k drop looks alarming on a small scale chart, the percentage correction is completely in line with the previous corrections (as the base BTC price divisor has more than doubled).
The retracement at breaching $8k was actually larger than the recent $9k retracement and did come close to making a lower-low compared to the $7k correction. However the current $9k retracement low (~$8k) is $1k higher than the $8k retracement low (~$7k) – so very healthy. Even a $2k retracement from $9.1k would still have made a higher-low and should have been fine.
The steep parabolic curve and daily RSI up to $8k was unsustainable and would have resulted in a major reversal if it continued.
The healthy retracements at breaching $8k and $9k have considerably flattened the parabolic curve to a level that is more sustainable (in the absence of a bad event, manipulation or panic sales) and the daily RSI is also no longer in the high overbought regions.