This bear run is getting long in the tooth. The small timeframe bull flag and the wider timeframe falling wedge are both signs that the bears are running out of steam.
There is also an uptick in leveraged shorts. This is definitely something that helps to solidify a bottom, once the last folks to enter short positions near support cover or get liquidated on the way up causing it to break through resistance.
Using fib retracement levels as a guide, the following three numbers seem to fit as a possible BTCUSD bottom for this particular Bitcoin crash:
$2950 also fits nicely with horizontal support first tested in 2017 after the China ban. Nothing more damaging has happened since then to the market for Bitcoin in reality. This bear market is a lot like previous Bitcoin bear markets in percentage terms, thus far. Having cut the price in half, since the stability seen for months above $6000, I think that we are unlikely to go straight from here to $2200.
There is also an uptick in leveraged shorts. This is definitely something that helps to solidify a bottom, once the last folks to enter short positions near support cover or get liquidated on the way up causing it to break through resistance.
Using fib retracement levels as a guide, the following three numbers seem to fit as a possible BTCUSD bottom for this particular Bitcoin crash:
- $3050
- $2950
- $2200
$2950 also fits nicely with horizontal support first tested in 2017 after the China ban. Nothing more damaging has happened since then to the market for Bitcoin in reality. This bear market is a lot like previous Bitcoin bear markets in percentage terms, thus far. Having cut the price in half, since the stability seen for months above $6000, I think that we are unlikely to go straight from here to $2200.
