Is Bitcoin Crashing or Are We Seeing a Healthy Correction?!

The question we get every day as analysts nowadays is most often if Bitcoin (BTC) is dead, is it burning to the ground or are we in a correction and if it’s the latter then where we expect to find possible support?!

First we’d like to show you a weekly logarithmic (Log) chart of BTC. A log chart has the effect of smoothening out price movements and showing instead the real scale and magnitude of the price movements for a specific trading instrument.

As we can see on the chart it has been normal for BTC to go have upswings ranging from 150% to 237% until we saw the most significant run up (569%) which was the run-up we saw happening from September to December of last year. As you can also see it is frequent and very normal for BTC to have pullbacks ranging from anywhere between 35% and 42% until the one we are in at the present moment. We could then speculate that this pullback is very normal and healthy considering the massive upswing we saw near the end of 2017. It also could mean that we may have a bit further to go, but we will touch on this further in the article.

Here is a more zoomed in view on the 4H (240m) time-frame chart for BTC...

In this picture we can clearly a well defined pullback that is now creating a structured pennant or falling wedge where we have also added our Fibonacci Retracements and can see that so far it seems to be respecting those levels while making its way down and can also take note that we bounced right off that 0.786 Fib Retracement level at what were today’s lows. That level also coincided very closely and intersected with the bottom slope of our huge Falling Wedge formation.

We see other potential supports nearby and will be continuing to monitor this. Our team will make sure to keep you up to date through this channel!

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James Larlee - Hyped on Crypto and My Crypto Academy Analyst and Trading Coach
Mitch Ray - Hyped on Crypto and My Crypto Academy Analyst and Trading Coach

Disclaimer

Do NOT trade based on what you see in this analysis. Hyped on Crypto (HoC) and the Analyst that produced this analysis are not to be held responsible for any losses that may occur. You and you alone are responsible for deciding if you are comfortable accepting the risk involved in trading. You should only trade based on your knowledge, experience, and your own personal risk tolerance. This information is for educational purposes only. Trading in any market contains a high degree of risk. It is possible and EXTREMELY likely that you will lose some if not all of your initial investment. HoC or the Analyst that produced this analysis is not a licensed financial planner or adviser. If you are unsure of anything in the financial market, always seek advice from a licensed financial planner or adviser. Any and ALL content published by HoC and/or affiliates should be NOT be considered financial advice. Invest at your own risk and as always, do your own research!