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STEEM · 191w

BTC, how deep is this dip


We are experiencing a major dip in prince of BTC for the past few days. There are a number of factors that may (or may not) have caused this:

Reports on China's Ban on BTC exchanges can cause this panic sell, China's ICO regulation may cause the overall market cap to decrease, and recently, "Bitcoin is a fraud" by JPMorgan CEO, could make some newcomer to hold back.

Overall, there is a notion that, "This is the Bitcoin bubble burst".

First of all, Bitcoin is here to stay. It manged to overcome many road blocks in the past. Blockchain technology is a breakthrough in innovation. Bitcoin is its biggest testimonial. There are many smart people building fabulous technology around it, like ETHEREUM, RIPPLE, GOLEM, SIA, MAIDSAFE etc to name a few. Many of these (if not all) will become the new norm for the future. And so the Bitcoin.

To sum up, this is a market correction. It happens to all kinds of market. Similar to stock market in the 1920s, Cryptocurrency market, is just at its initial phase. Stock markets, saw the 1930s great depression, 2000s doc com bubble, 2008s housing bubble. It came back strong even after all these issues. Cryptocurrency market, will not be any different.

That being cleared up, lets get to the Technical Analysis of BTC/USD.

Price dip

Lets not be over enthusiastic about Bitcoin too. BTC/USD dropped by 35% from its peak. Do not believe, it is just going to the moon from here on. That is a possibility. However, the probability is, BTC will drop further. Here is why I think that.

The above picture is a price action of BTC/USD. The top part is the "Bollinger Band" of the closing Price. In the middle, we have the MACD of the closing price. The bottom part is the RSI (Relative Strength Index) of the closing price. Now, if you see the last part of this, in all 3 graphs, you will observe:

The last Red Candle is below the lower level of Bollinger Band (top chart). The MACD...
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