It happened again. Bitcoin lost its support at $4,000 and is still falling. It is about to take a shot at $3900, and its ability to hold that level is questionable at best. The broader market is trading in line with BTC, and most coins are down by at least double digits at this point. Chinese market suppression coupled with comments from JPMorgan CEO Jamie Dimon was more than the market could handle, it seems.
Although initial reactions may be that of fear, the best course of action is to hold on for dear life (HODL). Bitcoin has seen corrections before, and it has lived on to set fresh highs; this will likely be one of those times. The pullback from $5000-4000 was timid at best, and what we are seeing now is a healthy, full blown correction. The June 2017 high and then-all-time high of ~$3000 will be the next hard technical/psychological support level, and it will be next to impossible to break. Between then and now we will encounter several soft resistance points that may offer enough resilience to send the market back north. As of now we remain in a bullish channel as seen below, and could even bounce back at $3900.
A breakout below that channel would, however, would indicate strong bearish movement, while a breakout above $4400 would indicate we are on our way upwards.
The Asian market is in control right now, as the North American market enjoys its slumber in preparation for tomorrow. This has been the trend as of the late, and an early night selloff is not surprising at this point, especially with more negative news hitting the market today. If tomorrow we awaken to a sub-$4k Bitcoin, it will likely mean further gloom ahead for the crypto market; for now China, Japan, South Korea, lead the way!
Latest posts by Creighton Piper (see all)
- SegWit Simplified: How Coinbase Deployment Will Impact Bitcoin and the Market - February 16, 2018
- Quick, Check Your Coinbase! If You Exchanged Fiat–>Crypto Recently You Could Be Missing Funds - February 16, 2018
- Bittrex Considers Ditching Tether but Adding USD Deposits | Is a LTC Trading Pair Possible? - February 5, 2018