Crypto Analysis | Bitcoin right on track! Short term correction likely

Good day Hiveians!

Join me in analyzing the crypto markets!

 

Several weeks ago I turned into a bitcoin bull, ever since it became clear that bitcoin was going to "follow the orange line"

After that I made a post which argued for a rather quick price increase of bitcoin to about 20k, which is exactly what is happening. Have a look at the chart from back then:

Now I think that almost everybody currently is on this bandwagon saying "bitcoin to the moon"; what is interesting to me, however, is to understand the movement of bitcoin. As you can see, my chart isn't pointing to the moon in a straight line ;) I am predicting a mid correction of 25-35% once we hit the general area of 20k. You can see this in the chart above. Why is this so?

First of all, prices never rise without corrections. This isn't so important if you are in a long position, but it is good to know, especially if you are into mid-term trading.

Secondly, look at the past. In the last bull run of 2016 you can see that once price hit the former high there was a correction of similar magnitude. Let's have another look:

The very steep price increase in the last several weeks makes a larger correction almost inevitable. The "orange line" should set the trend for the next months until price moves away from it in a parabolically .

 

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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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