Our beloved bitcoin has crashed about $10k in one hour, and many traders got rekt by this move. 1.5 billion longs have liquidated in that hour. Is this the end of the bull market? Are we crashing down to $43000? Let’s find out now.
Bitcoin crashed down 10k. Is it a big deal?
In this bull cycle, we saw many new investors and traders coming into the market, and most of them haven’t seen a significant correction like this. Many of them have panic sold at 52k and lost their money. But you should know bitcoin is now strong at the $50k level. But even if we broke down from there, we can still be in a bull trend. I’ll show you that now.
If you can see the blue line, it’s the 20 weekly EMA(Exponential Moving Average). We can still go down to that level and be in a bull market. Now it’s at $44k. This bull market is far from over.
But there is another thing that we should be cautious about: the rising wedge that broke down in the daily chart.
Rising wedges usually are a bearish pattern, and it just broke down. Rising wedges bearish target is at about $44k. Now two analyses are showing the same bearish price target, so be cautious. If you’re a trader, it’s good if you stay away from trading for a bit. We usually don’t short bitcoin in a bull market. If you’re an experienced trader, do your research and get into a trade.
Other leading cryptocurrencies like Ethereum, Cardano, and Binance coin also broke down. All the coins held support and now recovering again. But be very careful about these warning signs and do the proper risk management if you are going into trades now.
What is your price target? comment down below!
