Did we just see the bottom in Bitcoin?

in #bitcoin7 years ago

After weeks of terrible price action, the bottom might finally be in.

After reaching a high of just under $20k on December 16th, bitcoin had been making lower lows just about ever since.

This culminated this morning with a washout, extending all the way down into the $5,000's (about $5,900 to be exact), before prices ultimately snapped back.

"Just what I needed!"

This is exactly the kind of price reaction off the lows I have been waiting for.

If you look at the trading history on bitcoin, you will often find that when prices make a bottom, they tend to rebound aggressively.

If prices don't rebound aggressively, that's probably not the bottom yet.

We hadn't really seen that type of price action on either of the previous support zones above.

Prices bounced slightly off $9k, and then mostly just knifed through all the supports all the way down to the levels reached this morning.

The fact that there were no bounces were the main reasons I thought prices had further to fall.

However, taking a quick check on markets, we can see that prices are currently trading at $7,700.

Which is about $1,800 off the lows, or about a 33% bounce.

That is exactly the kind of bounce and price action we have seen in the past when bitcoin puts in a bottom.

For that reason I am expecting prices to trend upwards from here.

Where they ultimately go I am not sure, but I would venture to say that a near term bottom has likely been put in early this morning.

Here's to better times ahead for all those holding through this most recent gut wrenching drop!

Stay informed my friends.

Follow me: @jrcornel

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If the current support at 7000 does not hold, there is quite a lot of space down.

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Well it did touch about $5,900 this morning, so I am pretty sure that $7k support already didn't hold ;)

Ok, but it was intraday only.

I have not idea why people that bought bitcoin at 10k or more sell bitcoin at 7k or even less.. I just do not get it... people hold....

I do not think it will go under 6k but in coming weeks it will go back over 10k... but I maybe wrong.

@jrcornel
I agree with you.

Where some see the end others see the opportunity to enter.

I designed a global BTC Signal that I attach below, where I detail its operation and the solid signals it provides.
Also of what is happening in this exact moment and how the bottom was seen, in this signal.

bottoms.jpg

Zoom: http://prntscr.com/ibokgk

How does the signal work?

https://steemit.com/bitcoin/@thomasawa/btc-usd-update-30-01-2018-btc-world-signal

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Thanks for the insight!

The correction was a needed one to pave way for a healthy growth. The December highs of almost $20K were just abnormal. I'm sure by now weak hands have already sold off and we are going to experience normal growths.

The SEC meeting today didn't go so bad either.

Agreed. The meeting wasn't great but it also wasn't bad. That coupled with the fact that risky assets around the world rebounded, also helped bitcoin rebound.

yeah right i think the correction done

Many good reasons that we just saw the bottom:

  1. The world didn't end from the SEC/CFTC meeting. In fact, it was a clear positive and markets go up when uncertainty declines
  2. Chart showing a good bounce on high volume with a double-bottom (although intraday) at 5900
  3. Excessive negativity earlier today on Reddit and social media sites.
  4. Money flowing in soon from all over the world with the end of Chinese New Year, potential Bittrex fiat on/off-ramps, and Robinhood crypto trading

That said, I have some limit buy orders that still haven't filled just in case that I'm wrong.

You also forgot tax refund season here in the US ;)

Here is an abstract vision on the logarithmic price axis depicting the phrase After reaching $20k on December 16th... and making lower lows

I guess we had a quick journey to $20 000 and the similar quick trip to the dark territory below the $10 000.

I agree that correction on done and here is my Elliott Wave count:

Now it depends, how fast can we break the $8 000 or just can we

I also feel bullish now and hope that $8 000 will be broken ASAP. Some more ideas in my latest post, if interested.

Thanks for your analysis, @jrcornel! Nice to find the informative and relevant content.

Great chart, thanks for sharing! I'd also like to see that $8k number broken significantly.

It's hard to tell, some ppl are predicting $5k. BUT, it's fallen so much the probability is increasing that this is the bottom.

After the Congress Virtual Currency Meeting actually being positive..this could really be bottom.

My thoughts as well. Though I am not sure it was positive, but it definitely wasn't negative. ;)

Let's hope that future will be beneficial for the Cryptocurrency market and prices will move towards uptrend.

Stay Blessed.

I reconciled my portfolio when bitcoin was at $6,800... So far it sems like a good move...check it out..any thoughts?

https://steemit.com/bitcoin/@cryptoaltcoin/my-bear-market-portfolio-portfolio-consolidation-during-bear-market

You will never know when there is an exact bottom! We are getting close though with this bounce that as you started may start an uptrend. It seems now people are overly bearish, that's when you get back in! When people are overly bullish when the price is high, that's when you get out!

ANON FEEL SAME ABOUT BOTTOM IT LL BE BOUNCING AROUND 5k

GHOST IN THE DOOR FAMILY ANONYMOUSEsk.JPG

The fact that it did hit rock bottom gave me quite a scare but I'm quietly anticipating better days ahead. We managed to pass the dip safely with all struggles.

We need to form a positive uptrend here. All the money that flowed out of the market has to come in at some point.

I don't think we are there yet. Bitcoin has had its worst performing week / month in ever I believe, therefore there will certainly be stories with that as the theme, or at the very least "bubble" popping type narratives. I believe there is further to go.

Perhaps the tranistion of crypto royalty to a successor is the eventual outcome, has bitcoin gone as far as it can go?

Interesting times ahead that much is certainly for sure.

Its incredibly difficult to predict the bottom without a working crystal ball.

I would be inclined to say its got further to dip, especially with the goings on in the wider economic scene. There could well be some knock-on effects from the stock slump which feeds panic in the crypto market.

Longer term, the Cryptosphere will pull out of this funk, and should eclipse its previous highs with ease.

Im not so sure Bitcoin will remain top of the pile for too much longer though - its looking a bit dated!

100% agree, way too many variables. The amount of new people who got into the crypto market in the last quarter of the year was staggering, many with the view to easy earnings in a market that only went up, like some throw back to the Klondike days.

January has shown that reality is very far removed from such notions and people are sobering up to this and cashing out.

I've mentioned a few times that education only serves to strengthen the crypto space. It is an industry built on innovation and technology, research will show those that can last the pace versus those that lure investors in like some Venus fly trap.

I suspect the market trades sideways for a bit longer, with a possible dip down into the $4-5k range where miners break even, but regardless of price speculation, it seems clear the price 6-12 months from now will be substantially higher.

I think a lot of people bought which raised the price. I think it went as low as $6,200? Is was a heartbreaking watch