Everyone is thinking, Everyone is waiting..and Everyone is a bit puzzled as well. This correction has taken longer than usual lets admit that first, the ones in 2017 have almost immediately seen a reversal and continued bull runs. This time it is different, the volume struggles, price fluctuates, we see heads and shoulders and most of all..we see many more weak hands.
Let us see what could be behind all of this and where it might lead us.
Why did the price fall start
BTC was overbought and bitcoin cash team as always launched another coordinated attack on bitcoin..this time with Coinbase. Many newbies who are unaware of this rivalry that began 3 months back panicked, and also tried to jump the gun.
Why it continues to correct
There were some regulations in S Korea, Japan and China recently. Weak hands. Short lived Bull Traps too maybe.
CHRISTMAS time. A similar price correction happened last year. People usually take profits for festivities. (Read huge profits)
The BTC mempool is once again clogged, txn fees is insanely high. People are shifting to other currencies for transactions. This has had an overall impact on how BTC holdings look like.
What can we expect
We look at charts mainly and follow major news if any.. The charts indicate a really tricky situation for anyone to predict a price target.
BTC rebounded off of the 50day moving average two days back..and continues to fall after a brief rise. So either it either bounces back now which it hasn't yet or it goes below the 50MA before bouncing back.
We can expect maybe 1–2 more days of bearish trends before a reversal. Price range where it reverses is very hard to predict. It could be in the lower $11000s.
Advice to those trying to trade..if you're new to this, do not tread on this path as yet since the market is highly manipulated and it is impossible to guess the next move. Take help from experts in trading analysis and continuously follow the news to estimate the direction in which prices might go. Hold on to dear crypto during periods of uncertainty to be safe if you're in this for the long run.
Cheers! And a happy new year in advance.