BTC Update : Crypto Markets Hit Major Turbulence
Volatility is a trader's best bet at minting money. As long as there is enough price action in either direction to capitalize on a trader will not care. The one thing you donʼt want as a trader is a flat market.
As an investor/HODLer however, the volatility that weʼve been experiencing over the past week, is not attractive. If youʼre hanging on to a position , you might be probably looking to add to existing holding at what feels like a recent low. However, with the violetnt price swings , a buy that felt genius a few days ago may seem catastrophic today.
Given the recent movements, it does seem that the crypto narrative appears to be shifting. A changing of the guard/ churning of the seas however it might be called , is underway in the blockchain world, and nothing is going to be as it was before.
Currently, BTC is trading at $10,549. After breaking past metaphorical fences like a bull on heat, Bitcoinʼs trajectory appears to have broken down like a bull being brought down by a matador.
Bitcoin can count on some modicum of support between three levels – $8K to $8.2K, $8.7K to $8.9K, and $9.1 to $9.3K.
Resistance is trapping us all the way from $10.5 to $11K. Regaining the $11K mark is what it would take to cast off our bearish bias and start looking toward new highs at and above the $16.2K mark.
However, the casting away of the bearish bias isnʼt the most likely scenario at current. Here are a few versions of where price may be most likely headed according to Elliot Wave theory (there is a corresponding chart at the bottom of this post):
1: If price action develops in the vicinity of $10.3K, then we are likely printing wave 4 to the mid to high $8K range.
2: We get rejected at $10K with wave 3 still in full motion – or, wave 3 is still in motion, and we tap the other side of the channel just as in scenario 1. In this case, wave 5 will likely complete in the low $8K range with wave 3 finishing mid to high $8K.
3: We exit the channel upwards, the corrective pattern has finished, and we trade much higher. In that case, this was re- accumulation phase and we can at least$ target 16.2K – and, potentially, ATHs.
Scenarios 1 and 2 have strong similarities with their major divergence being targets to the downside. Scenario 3 is highly unlikely unless we close above $10.7–11K, which we mentioned before as being the requirement for us to lose of bearish bias.
It does looks like Bitcoin is currently in a corrective pattern that will need time to shakeout. For a healthy move back up, weʼll likely need to dip our toes into the levels mentioned above.
Couple of days ago, the market saw a capitulation occur during which altcoin traders put their beloved bags on sale at incredible discounts. The mass sell-off took most digital assets down with double-digit losses which, considering the recent high-level exposure for the digital asset market from the likes of top politicians, took many by surprise.
The intensity of the bearish vibes being projected toward the alt market has been turned up a few notches as many begin to seriously reconsider whether alts have any staying power at all. Bitcoinʼs market dominance has been steadily climbing back toward 70% to reflect that.
Only time will tell if this is a classic Oracle of Omaha “blood in the streets” moment or a real reconfiguration of the crypto space .