Well it appears the $12k resistance was too much for BTC in the near term, time to consolidate
Bitcoin made several attempts at breaking $12k and holding.
Unfortunately every single one was rebuffed and prices were sent south.
This finally breakdown likely means we are in a short term correcting.
However, that's not really a bad thing at all.
In fact, most breakouts tend to retest the trendline they broke out from before ultimately going higher.
Which looks something like this:
(Source:
)https://twitter.com/asmolting/status/1301564475691106307/photo/1
- asmolting
CME Gap also likely to play a role...
As you may or may not recall from some of my previous posts, there is a CME gap at $9,700 that is yet to fill.
Something like 95% of all CME gaps have filled at this point, meaning there is a high probability that they eventually fill.
Give the current market dynamics, it would not surprise me at all if this current dip ultimately fills that gap.
It would probably also make for a nice clean setup as the gap would be filled and the previous trendline would be retested as support.
Making for a very good spot to go long from...
Will it ultimately play out like that I am not sure, but I would not be surprised one bit if it did...
Also keep in mind that during the 2016-2017 bull market, bitcoin had several major dips along the way.
In fact, if I recall there was one dip that was close to 40% during that bull market.
Which means a dip from $12,400 down to $9,700 would be scary and painful for some, it wouldn't signal the end of the bull market.
Plus, remember the medium term macro view of central bank money printing and debasement of fiat isn't ending any time soon.
In fact, France just announced today a 100 billion euro plan to kick-start it's economy...
Which means...
BTMFD!
Stay informed my friends.
-Doc