2021-12-05 10:47:04
Bitcoin fell aggressively yesterday and, aside from the fact that we have been warning about a possible decline, can we learn anything from this mini-crash? I think so...
1. Overconfidence - Everyone was expecting a new ATH for BTC by the end of the year. So all we had to do was buy at 55k, wait a month, and earn 30% profit. Is it that simple?
2. When things are too obvious is most likely a trap- For 36 hours before the crash, bitcoin stood on very obvious support, like an invitation to buy. And, again, is it that simple? Will Bitcoin stay still on clear and visible support so that everyone can see, buy and make money?
3. Do not anticipate a pattern- a lot of analysts called an H&S pattern in BTC. But for that to have been an H&S , the formation had to be complete first, that is, to have a break above the neck, which did not happen.
4. Overlaverage- A lot of newbie traders have entered into the trade with the firm belief that BTC will not fall below 50-52k area and overexposed the account.
After breaking under the much-discussed support from 50-52k zone, Bitcoin fell aggressively and made a low above 41k .
A rebound was normal after such a drop and now the price is hovering under 50k, digesting losses.
In my opinion, we will have a new drop from BTC in the coming days and this rebound can be considered a good opportunity to open short trades.
50-52k zone is now resistance and only a clear break above would lift some of the pressure from the sell-side
Let's kindly share link
https://t.me/bitcointrendupdate
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