Ever since the 9th of November we have been in a downtrend for the Bitcoin priceaction. During this correction we could follow this downtrend with an almost perfect trendline. At this current time we are breaking out potentially signaling the end of this correction and continuing the bull market.
This is very similar to the September correction, where we could also draw a trendline. After breaking out of this trendline we saw massive upside. Also during the September correction, we had a period of compression at the end of the correction. Fast forward to now, and we also see compression of the price. This might be a nice fractal indicating that this correction is over.
Sentiment wise this is also similar to the September correction. At the end of September, sentiment was so low that everyone thought it was over and that price would continue to go down, anticipating for a 38k bitcoin. We never reached that target. The price did the opposite of what the herd thought and exploded to the upside. We might see the same now, a lot of retail traders think we will continue correcting and that bitcoin will hit 44k before going up again. You see the similarities?
If we manage to break the trendline on the daily timeframe today, I would say the correction is over.
This is very similar to the September correction, where we could also draw a trendline. After breaking out of this trendline we saw massive upside. Also during the September correction, we had a period of compression at the end of the correction. Fast forward to now, and we also see compression of the price. This might be a nice fractal indicating that this correction is over.
Sentiment wise this is also similar to the September correction. At the end of September, sentiment was so low that everyone thought it was over and that price would continue to go down, anticipating for a 38k bitcoin. We never reached that target. The price did the opposite of what the herd thought and exploded to the upside. We might see the same now, a lot of retail traders think we will continue correcting and that bitcoin will hit 44k before going up again. You see the similarities?
If we manage to break the trendline on the daily timeframe today, I would say the correction is over.