I think that the chart and indicators says it all. I agree to a certain extent that the crypto market in general is not yet mature and is so responsive to news and tweets which lead to crazy price fluctuations. However today, the fundamentals are in favor of the market and we are in the fear phase.
The Elliot wave theory is obvious hear combined with the market psychology indicates a potential drawdown for around 40-50%.
As far as the technical side is concerned :
1- Price action indicates possible formation of a head and shoulders pattern in the upcoming days
2- RSI indicates a very meaningful bearish divergence even after the big red candle spike
3- MACD is getting flatter and we might see a bearish crossover
4- Volume levels are getting lower with a domination of the bears
5- EMAs short term and long term spreads are getting wider.
I am seeing 3 potential scenarios:
1- The first we might go to 30k and bounce from there
2- The most probable is to reach 22-20k being a nice supply and demand area based on previous price action
3- Go as low as 18k and drive people crazy of a potential dump of the bitcoin.
Feel free to share your thoughts and opinions in the comments below.
The Elliot wave theory is obvious hear combined with the market psychology indicates a potential drawdown for around 40-50%.
As far as the technical side is concerned :
1- Price action indicates possible formation of a head and shoulders pattern in the upcoming days
2- RSI indicates a very meaningful bearish divergence even after the big red candle spike
3- MACD is getting flatter and we might see a bearish crossover
4- Volume levels are getting lower with a domination of the bears
5- EMAs short term and long term spreads are getting wider.
I am seeing 3 potential scenarios:
1- The first we might go to 30k and bounce from there
2- The most probable is to reach 22-20k being a nice supply and demand area based on previous price action
3- Go as low as 18k and drive people crazy of a potential dump of the bitcoin.
Feel free to share your thoughts and opinions in the comments below.