Since all the technically bullish signs I mentioned in my Bitcoin TA got broken, we're now heading back to the bottom line of the channel BTC once left.
As you can see from 25.05.2017 to 25.10.2017 Bitcoin moved up and down in a normal and healthy uptrend channel.
But then suddenly the development of the Bitcoin price went parabolic and got pumped more and more, mostly with money that didn't got in to stay.
Mainstream media started to "shill" BTC and I estimate that over 90% of the money that floated into the cryptomarket, since this parabolic development, wasn't from people which understand the technology nor the meaning behind cryptocurrencies. I also doubt that a large number of them have any trading/investment skills nor experience. These people bought in because they heared/thought they could make quick money, not because they believe in cryptocurrencies and not to make long-term investments.
In this big correction we can see how this money floats out of the market as fast as it floated into the market. Most weak hands sold their cryptocurrencies because they always thought about Bitcoin as a bubble, they only wanted to stay inside the market "until the bubble bursts".
Parabolic developments like from around 6.5k to 20k aren't healthy for the market. It's just like Bitcoin got pumped with air up to 20k.
And now Bitcoin is back in its healthy channel in which it moved between 25.05.2017 to 25.10.2017.
With the ongoing development of the price and if no more heavy FUD follows in the coming days I expect major support levels at around 6k and then 5.5k.
Important support levels (sorted by priority):
1. any touch of the bottom trendline of the old healthy channel
2. 6k -> high of 13.10.2017 + psychological support
3. 5.5k -> closed candles low of 18.10.2017 & 24.10.2017
4. 5k -> high of 31.08.2017 + psychological support
Feel free to ask questions or comment your opinion :)
As you can see from 25.05.2017 to 25.10.2017 Bitcoin moved up and down in a normal and healthy uptrend channel.
But then suddenly the development of the Bitcoin price went parabolic and got pumped more and more, mostly with money that didn't got in to stay.
Mainstream media started to "shill" BTC and I estimate that over 90% of the money that floated into the cryptomarket, since this parabolic development, wasn't from people which understand the technology nor the meaning behind cryptocurrencies. I also doubt that a large number of them have any trading/investment skills nor experience. These people bought in because they heared/thought they could make quick money, not because they believe in cryptocurrencies and not to make long-term investments.
In this big correction we can see how this money floats out of the market as fast as it floated into the market. Most weak hands sold their cryptocurrencies because they always thought about Bitcoin as a bubble, they only wanted to stay inside the market "until the bubble bursts".
Parabolic developments like from around 6.5k to 20k aren't healthy for the market. It's just like Bitcoin got pumped with air up to 20k.
And now Bitcoin is back in its healthy channel in which it moved between 25.05.2017 to 25.10.2017.
With the ongoing development of the price and if no more heavy FUD follows in the coming days I expect major support levels at around 6k and then 5.5k.
Important support levels (sorted by priority):
1. any touch of the bottom trendline of the old healthy channel
2. 6k -> high of 13.10.2017 + psychological support
3. 5.5k -> closed candles low of 18.10.2017 & 24.10.2017
4. 5k -> high of 31.08.2017 + psychological support
Feel free to ask questions or comment your opinion :)
Trade closed: target reached:
The support on the bottom trendline of the old healthy channel held as expected. BTC then headed back to the upper trendline very quick.
I'll update this idea with a new analysis of the further development of the BTC price.
I'll update this idea with a new analysis of the further development of the BTC price.
