BTCUSD retraced 50% of its all-time gains on January 17. The same trading day saw BTCUSD retrace 61.8% of gains since November 17 as well as a test of the 144 day , which has acted as dynamic support going all the way back to October 2015. These are signs of a healthy correction and indicate the up trend in BTCUSD is in tact.
My limit orders filled at 10k, 10.1k, and 10.2k. I have a stop below 9.3k just in case price wants to retrace deeper toward the 7.5k area and my target is "to the moon!"
Please see my updated analysis taking into account recent price action of the crypto market and historical trends in Bitcoin price.
What we are seeing is perfectly normal human behavioral price action known as mean reversion. Choose any market you like: stocks, bonds, FOREX, gold, oil... Price retracement is required before price can move higher. Regardless of news or world events, price goes right on moving in consistent patterns based on human psychology. Cryptocurrency markets saw a healthy 50% retracement and I believe it is most likely we go up from here. Nobody can see the future, so I got in this trade at a low price with a tight stop for a nice low risk entry in case price moves against me.