Bitcoin has been falling dramatically since yesterday. From its all-time high of $42,000, it fell to $31,000 in just a day. The dip is very much like the dip or 2017. We saw the same thing happen then, whereafter it's a fantastic rally to its all-time high, it corrected by an over 50% slump right after.
This is not the time to lose heart in Bitcoin, this is the time to dive back into the market and buy the dip. If you are new to investing in bitcoin or in general, there is no better time than to buy.
I believe that it's best to buy when the prices are low to make a profit when it rises back.
So where is bitcoin going right now in the immediate short term? If it has hit the lowest point it can go, then we could maybe see it bounce back. We should take these Fibonacci levels seriously; the $36,000 and the $38,800 point.
The one-hour ribbon is clearly showing that the bears are in control, which is a sell signal. In the four-hour time frame, we also see that the bears are in control, we had two four-hour close below the ribbon.
Right now, it looks like bitcoin is coming up trying to retest the bottom of the ribbon, if we can break back above it again, then it shows that the bulls might be able to save the downtrend and we could go back up again.
If we see rejection, then it's highly likely that we are going to continue a downtrend. So this is a critical point for the immediate short term. Comparing similar movements of the bitcoin over the years, at the point we should see another high, maybe not as much as the previous one, but close.
On the weekly timeframe, the bitcoin has clearly been extended, we got all the way to 96%, the last time it happened, we saw a huge correction happen after that. Then the correction went down as low as over 80%. But I'm not saying that is what we would see, but we expected the correction, it has happened, and honestly, it is a healthy thing for bitcoin.
So, in the immediate short term, either of the two scenarios I talked about above could play out, the market is volatile and we could see it play out either way.
