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Crypto Analysis | BTC 5000$

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@tobetada
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Good day Steemians!

Join me in analyzing the crypto markets!

 

Since our last post BTC has gained almost 100% in value. Something that is not too unexpected after a 60% correction. If you ever see such a drop in BTC again, you know that it's the right time to buy (at least in the short term). The obvious question is how will the price develop in the future? As always, we have to look at the past to understand the future.

What we saw in the last correction is that there was a continued decline in trading volume. This culminated in a tremendous spike in which traders dumped their BTC on the market in great volume. We might be seeing something similarly currently. In the first chart you can see a continued decline in volume on a rising price. This strongly suggests that the upwards momentum is running out of steam.

The other clue is from the fractal pattern of BTC. The time frame between January 2020 and the middle of march indicates a head and shoulders pattern which is very likely being repeated at the moment. If this is confirmed then the correction should look something like the black line drawn in the charts.

How low might the price of BTC fall again? I think 5.000$ is a very real possibility. There is a strong support here (from the beginning of the bull market). However, as BTC corrected itself to 3.700$ that support was briefly broken which could mean that the real bottom is at around 4.000$. However, this is unclear at the moment. We should first see if the head and shoulders pattern gets confirmed.

 


As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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