In the last couple of hours, the price of bitcoin has quickly rallied down back to $58,000, at one point reaching $56,800, after not being able to break through a key resistance level that I have drawn using a Pitchfork.
The price quickly rallied up to $59,700 before crashing. This could have been caused for many reasons. It could have been caused by a very quick rise in price that caused the collapse, or a very big volume of bearish orders at that moment. The price has finally caught up and has gone back into previous key positions that allow us to determine its next moves better.
The drop might have been not too big, but amateur traders started selling off there assets too quickly after seeing a small drop in price.
Mind that the price never totally wen out of my graphs and actually bounced off a key support level. It has been retesting a specific Fibonacci level for hours now, but might make a slow rise back to the top starting from now.
This is the best example as to why you should not sell your assets so quickly.
The cycle will continue and BTC will rise back!
Thierry
This analysis is only for educational purposes.
The price quickly rallied up to $59,700 before crashing. This could have been caused for many reasons. It could have been caused by a very quick rise in price that caused the collapse, or a very big volume of bearish orders at that moment. The price has finally caught up and has gone back into previous key positions that allow us to determine its next moves better.
The drop might have been not too big, but amateur traders started selling off there assets too quickly after seeing a small drop in price.
Mind that the price never totally wen out of my graphs and actually bounced off a key support level. It has been retesting a specific Fibonacci level for hours now, but might make a slow rise back to the top starting from now.
This is the best example as to why you should not sell your assets so quickly.
The cycle will continue and BTC will rise back!
Thierry
This analysis is only for educational purposes.