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Is it too early to call for a nearly 30% correction?

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@beehivetrader
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Year 2020 in Crypto seems to be all about DeFi, Altcoins, Uniswap, and of course, "AltSzn", , and Money printing!!

As sentiments in the market become very greedy, with most of the traders being too much bullish, is it time for bulls to take a small break for some time?

Disclaimer: I'm not a certified financial advisor, and even though I've been trading for quite a few years, I urge people reading this, and my other posts to #dyor (Do your own research) before taking any decisions! Of course I'm going to help you out if you have some queries/doubts, so feel free to let me know in the comments, or on Twitter :)

Let's have a look at two possibilities ...

Chart: BTC/USD, 1W,

Link: https://www.tradingview.com/x/b9SHAsod/

Points in favor of the correction:

  1. As per gaps:
    a) CME gaps around 12k is filled, and
    b) gaps around 9.6k is yet to fill. (Reference)

  2. Sentiments are too much bullish, with almost 80-90% of the traders being bullish now. ( As per Theory of contrary opinion, it technically calls for a correction )

  3. In a long term trending market, we should have corrections, the rallies will be more sustainable, and the growth will be more organic in that case.

Points not in favor of the correction:

  1. The weekly candles are making solid closes, and Bitcoin doesn't seem to slow down yet.

  2. The Ichimoku cloud is just turning green, and the Super trend indicator is also printing Green dots over and over, so There is no reason, as per the current trends. (In charts below

Link: https://www.tradingview.com/x/3tpDEsw2/

Overall Bias: Neutral/Bullish. If it breaks above the CME gaps, I'll look forward to $14k/BTC. If it fails to break above, I'll have a look around $9.6k to see how price reacts.

A few additional points to note:

  1. Am I saying that the market "will" move in this direction? Ans: No, but it may, this is just a probability which I shared.

  2. Am I saying that this is a massive Fakeout? Ans: Not yet, it still did not break below the multi month trendline resistance.

  3. will it be wise to short? Ans: Probably no, unless you assess the risks properly, and set stoplosses based on your ustifications. The current market technicals are showing a trend change, and you don't want to get caught on the wrong side. But you can still short and make decent money in case market corrects!

  4. Are the dips for buying? Ans: I'd say, yes.

But,in the end, #dyor, Happy trading/HODLing.

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Posted Using LeoFinance