After a huge bull run back in June 2017 we experienced a very healthy market correction that retraced approximately 50% of gain before starting a new bull run. As of today it looks like the market has just corrected a similar 50% from recent highs and could potentially be signalling the end of this correction. Personally, I think this leg down was greatly exasperated by some well-timed negative news out of China and a combination of weak hands and big money taking profits.
If we look at the RSI we can see that Bitcoin is about to dip into the oversold range which has previous indicated that the correction may have run its course. And now that all the China news has seemed to have resolved itself and we now know China's plans regarding the regulation of ICOs and Exchanges, I think this could be the end of the correction. BUT beware, if your an active trader and Bitcoin breaks major support at around $3,000 we could see another leg down to $2,600.
Interesting note: After the last major correction like this the crypto market went on to almost triple in market cap from $65B to $180B. If we continue to grow at a similar pace we could easily hit $250-300 Billion in Market Cap before the next major correction.
There's a lot of sales going on right now so happy investing!
If we look at the RSI we can see that Bitcoin is about to dip into the oversold range which has previous indicated that the correction may have run its course. And now that all the China news has seemed to have resolved itself and we now know China's plans regarding the regulation of ICOs and Exchanges, I think this could be the end of the correction. BUT beware, if your an active trader and Bitcoin breaks major support at around $3,000 we could see another leg down to $2,600.
Interesting note: After the last major correction like this the crypto market went on to almost triple in market cap from $65B to $180B. If we continue to grow at a similar pace we could easily hit $250-300 Billion in Market Cap before the next major correction.
There's a lot of sales going on right now so happy investing!