What happen to BTCUSD?
Well, today was not a good day, it was liquidated nearly one billion dollars in the futures market.
But what is our situation now? Is the long-term market trend is correcting or is it falling?
Looking at the RSI, we see that there is a strong negative divergence between the price and the RSI, which has already warned for a price correction. In my opinion, we are not in a dangerous situation at the moment and the situation seems quite normal.
Let's look at the chart in weekly time-frame. You can see that the price has just hit the mid-term trend line (the blue line). I am currently considering three scenarios:
1 - Bulls come and raise the price from this point and
BTCUSD goes the green path.And we all take a deep breath.
2 - Bears come and break the mid-term trend line and and the price drops to 42K support. Note the strength of this resistance, which can be a return point. In this case, the price hits the long-term trend line (black one) and continues the orange path.I think this is a scenario where you can buy the DIP.
3 - and the nightmare scenario when the long-term trend line is broken, then the situation becomes dangerous and we hope this does not happen.
Anyway, I want to say keep calm for now and if you are a Hodler, do not emotional actions, look at the chart in the weekly and monthly time frames. Looking at Bitcoin's history, you see these correction are completely normal, even they help market health unless we lose long-term dynamic and static supports.
But what is our situation now? Is the long-term market trend is correcting or is it falling?
Looking at the RSI, we see that there is a strong negative divergence between the price and the RSI, which has already warned for a price correction. In my opinion, we are not in a dangerous situation at the moment and the situation seems quite normal.
Let's look at the chart in weekly time-frame. You can see that the price has just hit the mid-term trend line (the blue line). I am currently considering three scenarios:
1 - Bulls come and raise the price from this point and
BTCUSD goes the green path.And we all take a deep breath.2 - Bears come and break the mid-term trend line and and the price drops to 42K support. Note the strength of this resistance, which can be a return point. In this case, the price hits the long-term trend line (black one) and continues the orange path.I think this is a scenario where you can buy the DIP.
3 - and the nightmare scenario when the long-term trend line is broken, then the situation becomes dangerous and we hope this does not happen.
Anyway, I want to say keep calm for now and if you are a Hodler, do not emotional actions, look at the chart in the weekly and monthly time frames. Looking at Bitcoin's history, you see these correction are completely normal, even they help market health unless we lose long-term dynamic and static supports.
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