The indicators began to turn a day or so ago, but not all of them were lined up. Now, the stochastic has turned down, the MACD has turned down and is weakening and the OBV has also angled downward. Therefore I feel safe in saying we are correcting. Remember that in a previous chart I stated that there would be major resistance at the 5700-5750 level. We attempted to break through that several times and failed, therefore now we correct a little bit.
BUT we need to keep perspective on this as the long term trend is still up as the 50 Day Moving Average is still on an upward incline. This is KEY to understanding exactly which way Bitcoin is moving overall. The 50 MA is also a major support area, but not THE support area for this chart. It looks to me that support begins from where the chart is now, down to 5450 and then 5200. I don't think we will break below 5000 (Or if it does, it won't stay there long) as that is the last all time high and a major, Major, MAJOR support.
So overall, we are looking at a minor short term correction, or pullback to set us up for a move higher. This is a classic chart setup for a retrace and then to a higher high as most traders know that once an all time high has been established, and especially one that moved as quickly as this one did in a 24 hour period (a $1000 move), the retrace creates a rubberband slingshot effect to boost us up past the last resistance.
I would not short this, but instead HODL (Hold On for Dear Life) as when it rebounds it will do so quickly, perhaps even unexpectedly since there is so much volatility in BTC, even at this price. We are NOT at the end of Wave 5, and only when that happens would we consider shorting or exiting until a new uptrend is established.
BUT we need to keep perspective on this as the long term trend is still up as the 50 Day Moving Average is still on an upward incline. This is KEY to understanding exactly which way Bitcoin is moving overall. The 50 MA is also a major support area, but not THE support area for this chart. It looks to me that support begins from where the chart is now, down to 5450 and then 5200. I don't think we will break below 5000 (Or if it does, it won't stay there long) as that is the last all time high and a major, Major, MAJOR support.
So overall, we are looking at a minor short term correction, or pullback to set us up for a move higher. This is a classic chart setup for a retrace and then to a higher high as most traders know that once an all time high has been established, and especially one that moved as quickly as this one did in a 24 hour period (a $1000 move), the retrace creates a rubberband slingshot effect to boost us up past the last resistance.
I would not short this, but instead HODL (Hold On for Dear Life) as when it rebounds it will do so quickly, perhaps even unexpectedly since there is so much volatility in BTC, even at this price. We are NOT at the end of Wave 5, and only when that happens would we consider shorting or exiting until a new uptrend is established.