Bitcoin has been the Leader of all crypto since its inception.
It has managed to reach 1 trillion in market capitalization and a price of around 60k (!!!).
The “miracle” of trading and investing has reached a brick wall in mid-April and started to descend in prices.
Fast forward 2 months and we are already in a 50% retracement from the all-time high.
A lot of investors (the newcomers) have suffered extreme losses to their portfolios as this fall has affected almost 90% of the crypto instruments in the retail world.
So, someone cannot help but wonder, “Is this the end of the fall or are we preparing for a third and final push through the prices of 2020?”.
As you can see below, recently BTC/USD has broken its triangle formation on the downside.
This could indicate a bearish shift in sentiment.
Currently, it is making a retracement, in order to validate the break by testing the lower level of the formation.
This is price action “by the book”.
However major support sits at 29000, so even though the break of the triangle has occurred, an even stronger confirmation of the price drop would be a break of the 29000 mark.
Now, plenty of readers will pose a question. The million-dollar one…
“So, the market is tanking, where do I buy/reenter the market?”
Well, this is a question that cannot be answered, however, some of the potential targets of the current move can be explored.
If this is considered as a pennant formation then the price drop can reach even to 7000 price point (long-term target)!
However, there are other alternative stopping stations by using the Fibonacci retracement levels.
Though, all of the above could be easily negated should the price break the upper level of the triangle and violates the 45000 level.
In any of those scenarios, or any other equivalent, the investor’s utmost attention to detail and risk management is required as BTC/USD isn’t only the King of high returns but of faster margin calls also.
So, stay concentrated, plan your trade and trade your plan.
Disclaimer
The views expressed do not constitute investment or any other advice/recommendation/suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade. Every metric and the statistical number is a result of a past performance, which does not constitute a promise or a certainty for a future one