Hello traders,
Bitcoin is in a short term downtrend as well as downtrend in general, (however major trend remains bullish unless some key level are breached( later about that). We can see that in a short term price is forming a very tight descending channel. I think that there is a good chance that we will continue to do so unless we reach some key limits at 43 and 40k. We should carefully watch those levels as major key support levels, so from these level a bounce can be expected. Usually those kind of channels in a bear sentiment are broken to the upside at least 60% of the time for a bounce, but bounces are usually weak and short lived. On way or another it doesn't really matter which side it will break. More importantly is how you react to what market is presenting and act accordingly with objective mind/healthy risk management and patience.
I believe that from higher time frame perspective bitcoin is now in a ranging market, it might continue some up and down movements in between price range of 40-50k before continuing to move up or down further.
There is a possibility that it will reverse very soon (for example bounce from local fib 0.618), but probability is low.
If it breaches 40k with confirmation, well then concerns about extended correction or even a trend reversal might be in place (it is very unlikely that corrections in a bull market would see 50% or more retracement, unless it is a second wave down from Elliot wave perspective, which can retrace 100%, which in this case I doubt very much, hence the huge move up from 3k to 60k).
If bitcoin will go down, altcoins will bleed along. However if bitcoin will settle down and range for some time, there much opportunity in alts, taking into account that bitcoin market cap reducing slowly against ALTS market cap. Another point to consider is that USDT market cap is also going up little by little, which might signal that some people in a short term are concerned and take a less riskier way of keeping their capital in stable coins.
Nonetheless, there are always some coins which are going strong against bitcoin even if bitcoin is bleeding hard. My take from this would be that it is a good idea to long those coins which are performing relatively strong against bitcoin as a hedge if you have multiple short positions on coins which are bleeding together with bitcoin. There are two reasons for doing so:
1. Reducing risk
2. Increasing capital if both scenarios worked out in your favor.
Good luck
Bitcoin is in a short term downtrend as well as downtrend in general, (however major trend remains bullish unless some key level are breached( later about that). We can see that in a short term price is forming a very tight descending channel. I think that there is a good chance that we will continue to do so unless we reach some key limits at 43 and 40k. We should carefully watch those levels as major key support levels, so from these level a bounce can be expected. Usually those kind of channels in a bear sentiment are broken to the upside at least 60% of the time for a bounce, but bounces are usually weak and short lived. On way or another it doesn't really matter which side it will break. More importantly is how you react to what market is presenting and act accordingly with objective mind/healthy risk management and patience.
I believe that from higher time frame perspective bitcoin is now in a ranging market, it might continue some up and down movements in between price range of 40-50k before continuing to move up or down further.
There is a possibility that it will reverse very soon (for example bounce from local fib 0.618), but probability is low.
If it breaches 40k with confirmation, well then concerns about extended correction or even a trend reversal might be in place (it is very unlikely that corrections in a bull market would see 50% or more retracement, unless it is a second wave down from Elliot wave perspective, which can retrace 100%, which in this case I doubt very much, hence the huge move up from 3k to 60k).
If bitcoin will go down, altcoins will bleed along. However if bitcoin will settle down and range for some time, there much opportunity in alts, taking into account that bitcoin market cap reducing slowly against ALTS market cap. Another point to consider is that USDT market cap is also going up little by little, which might signal that some people in a short term are concerned and take a less riskier way of keeping their capital in stable coins.
Nonetheless, there are always some coins which are going strong against bitcoin even if bitcoin is bleeding hard. My take from this would be that it is a good idea to long those coins which are performing relatively strong against bitcoin as a hedge if you have multiple short positions on coins which are bleeding together with bitcoin. There are two reasons for doing so:
1. Reducing risk
2. Increasing capital if both scenarios worked out in your favor.
Good luck