| SUMMARY |
Based on the premise that "previous resistance becomes new support" (Thanks Nicholas Merten - Data Dash), as well as several other data points, we can carry out analysis as follows:
1) The last "big correction" was after the SegWit2X postponement. We saw a BTC correction of ~31% - Are we about to see the same again?
2) Previous Resistance becomes new Support - I have laid out 4 support levels that are options;
Support 1 - ~8150 USD
Support 2 - ~7550 USD
Support 3 - ~6400 USD
Support 4 - ~5400 USD
What you can observe from the chart and the support levels, is that support 2,3 & 4 fall nicely on the FIB Retracement levels - providing further confirmation of where the price action may lead.
3) ( ) - Currently showing WAYYY over extended.
| Conclusion |
With the above in mind, there are several things to ask yourself if looking to invest now:
1) Investment Strategy
What timescale are you looking to retrieve your principle (are you looking to scalp) or HODL?
2) Risk Appetite
Would you be comfortable investing now, and taking a possible ~30% hit, until the price increases again (which I have no doubt it will) - but establishing your risk appetite is key. "Buy LOW, Sell HIGH".
Have you set up your funding to capitalise on any correction that may be about to occur?
BTC and crypto as a whole is are unwieldily and NO ONE knows or can predict where the market is about to take us, however, we can try to predict with straightforward analysis and staying sharp!
Short - Due to my above analysis (but Long overall)
****You should carry out your own research and analysis before investing****