Bitcoin has gone down even deeper. This could create more fear, not FOMO but more into FUD. Amateur investors would have sold all they had at this stage. Remember BTC was like a diamond back in December and now it is like an unwanted jewel ready to be sold for cash. The Bear is certainly the winner since Christmas and now the Bull has lost so much. The current price is almost crossing the 350 daily moving average and the volume is low. I would suggest investors to be careful at this moment but not to fear because most smart traders would commonly place buy position at the price where the chart hit certain values for quick gain and sell again to profit so that they can drive the price down even further. (They only know what the price they set; I have a feeling for short period, which would be along 350 MA)
Target H: $8500 L: $7000
NOTES:
- This is not financial advice so please do your own diligent before investing
- Never invest more than you can afford to lose
- Technical Analysis is not pure science
- Market is not something that can be predicted accurately because of the behaviors of investors
Theory:
Technical analysis employs models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, business cycles, stock market cycles or, classically, through recognition of chart patterns.
In finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.
https://en.wikipedia.org/wiki/Technical_analysis