Recently there has been a lot of talk and articles about the bitcoin and other cryptocurrencies in general. "Will the prices go back up or will they drop?", "should i invest or should i not ?" are few examples of questions I've had to answer last week especially. So i make this brief post to answer those questions from a TECHNICAL point of view.
Last year the coin market experienced a crazy increase in the price of bitcoin, it kept going up up! up!!! for days, weeks, months, didn't stop, so when the price dropped to 11k it may have caused some panic to some investors and newbies to the market.
A lot of fundamentals could've caused the drop if you read the news but from a technical point of view this is very normal, in fact i anticipated it and was waiting on it, below is a screenshot of this
For those not familiar with trading this drop is called a 'retracement'. Imagine the market as a person, Forest gumping (running) its way to the top and he got tired and needed to take a breather. And that's what happened; the market got exhausted and needed a "rest".
However it did find resistance around the 11-10k area i marked blue. The candles with long wicks(sticks) represents a 'rejection' of that area. Its like buyers are saying "this is where the drop ends we cant take it anymore". So technically we can expect the price to bounce from that area.
The summary is, if you're looking to make an investment on bitcoin, now would be the best time to buy this coin, maybe another opportunity will come up in the future i don't know, i don't imagine the price being this low for long as price will be attempting to reach its former highs of 20k and above maybe.
Take your step, make the move and remember to risk only what you can afford to lose. If you want further analysis be sure to notify me, i will be looking for moves on other crypto coins too, my top 4 are Bitcoin, Ripple and ETN and ADA.
Don't forget to ask any technical questions you have and leave an Upvote. Follow for more Crypto and Forex analysis. Do have a great week,Cheers.