BTC has pushed close to 35k over the New Year holidays and as soon as people got back to work (including traders), on Monday morning, 4th Jan, crypto market corrected quite severely in less than a few hours just as alts were pumping hard, registering double digit gains (see ETH).
BTC corrected 20% piercing the the Fib 161.8 level as measured from past ATH (20k) to its low (3k) and touching the local structure Fib 31.2 level briefly before recovering most of its losses (>50%).
As long as BTC stays in the ascending channel and does not break below the Fib. 161.8 + 31.2 levels the market structure is intact and BTC is clear to reach new highs, with a local target at 36k which is exactly 2x the previous ATH of 19.6k.
This sharp and quick 20% correction fits the narrative of a bull trend for BTC which would now be good to push higher.
If, however, the market structure collapses, then we may be due for a +30% correction, which would bring price closer to the low 20k levels as indicated by Fib 61.8 + 65 levels on the chart which is also slightly above the previous ATH of 20k. Hence a great buy area. If this happens, traders will surely front-run the previous ATH level turned support (19.6k), so buying at 22-23k is wise if this scenario plays out.
Overall BTC remains extremely bullish in 2021, the top of this cycle can be anywhere between 100k to 400k. Short corrections of +30% should be expected and as long as these recover fast as seen in this case, we're good for new highs.
Word of caution, if you use leverage, these market conditions where BTC moves 20% in a day or over 7k will liquidate you instantly if you go on leverage over 5x. So trade wisely. Also shorting has to be quick and open positions closed as soon as possible. Don't short a train aiming for 100k+
Like and subscribe and wish you all a wonderful 2021!
BTC corrected 20% piercing the the Fib 161.8 level as measured from past ATH (20k) to its low (3k) and touching the local structure Fib 31.2 level briefly before recovering most of its losses (>50%).
As long as BTC stays in the ascending channel and does not break below the Fib. 161.8 + 31.2 levels the market structure is intact and BTC is clear to reach new highs, with a local target at 36k which is exactly 2x the previous ATH of 19.6k.
This sharp and quick 20% correction fits the narrative of a bull trend for BTC which would now be good to push higher.
If, however, the market structure collapses, then we may be due for a +30% correction, which would bring price closer to the low 20k levels as indicated by Fib 61.8 + 65 levels on the chart which is also slightly above the previous ATH of 20k. Hence a great buy area. If this happens, traders will surely front-run the previous ATH level turned support (19.6k), so buying at 22-23k is wise if this scenario plays out.
Overall BTC remains extremely bullish in 2021, the top of this cycle can be anywhere between 100k to 400k. Short corrections of +30% should be expected and as long as these recover fast as seen in this case, we're good for new highs.
Word of caution, if you use leverage, these market conditions where BTC moves 20% in a day or over 7k will liquidate you instantly if you go on leverage over 5x. So trade wisely. Also shorting has to be quick and open positions closed as soon as possible. Don't short a train aiming for 100k+
Like and subscribe and wish you all a wonderful 2021!
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