24.2.2021 - Bitcoin (BTC / USD)Hi Traders!
In recent days, bitcoin has become the centre of your questions again after a major decline. Is the bear market coming again? Where will this correction stop? What to do?
We would certainly not talk about the bear market in the current situation. The decline of the bitcoin price was due to the values at which it was last weeks. The fact that it fell by as much as 22% is nothing out of the ordinary, and in the last bull run, momentary declines of up to 40% were nothing strange. Moreover, from the point of view of fundamentals, practically nothing has changed.
What type of correction are we currently tracking? This is a more complex question and there are several options:
1. Triangle
As a first option, we are offered a triangle, which would mean that we would move in a triangle formation for about 2 to 3 weeks and then head up again.
2. ABC correction
The second option is ABC correction. However, it should be noted that this can also take several forms. In general, the strongest support would be at $ 40,680.
3. Other
On a theoretical level, we must also admit the fact that it could be some form of channel or distribution. There are really many possibilities for correction structures.
At this point, we cannot say clearly what type of correction it is , as we do not have enough data on the chart yet. What to do next? Currently, the only option is to watch the chart and trade intra-day until the chart shows what formation is going to form . Once we find out, we will be able to determine more precisely the decline target as well as the target for further growth.
May the crypto be with you!
