Why is Bitcoin Still in a Correction?? | Will Bitcoin Still Hit 50K?

Why is Bitcoin Still in a Correction?? | Will Bitcoin Still Hit 50K?

So let's go ahead and jump on to the chart guys There have been some technical difficulties on bitcoin over the last three days because bitcoin has corrected from, where it rallied to on friday, of around 42 and a half thousand dollars we rallied up Here - and that is a very good thing, But yes, we have in fact corrected ever since the beginning of saturday, but the first thing that i need to point out is this trend line right here notice, this flat level of resistance on bitcoin. This is set back on the 15th of june at 40, 700, and the reason that it is so incredibly critical is because it was the most recent major high that bitcoin had set uh up until that time we had seen lower highs right here. Lower highs, lower highs, three of them, in fact, three major lower highs, and they were signaling that bitcoin was in a downtrend. But now we have set a new higher high on the daily chart, and that is a new precedent, because if we want to move into an uptrend, we got to see higher highs and higher lows.

Now we've seen the higher high Now we just need to see the higher low and we might be about to see that pretty soon zooming into the four hourly chart. We can see that bitcoin has been rejecting for the last 48 hours and change ever since we hit our top here. On the 31st of july, we have been pulling to the downside for the last day and a half. In fact, we pulled back 8.2. A lot of people are very concerned about this. A lot of people are worried, like hey, jeb, look, bitcoin, just corrected eight and a half percent in a day and a half

Is that a problem? Should we be concerned about bitcoin, i'm here to tell you? No, absolutely not you shouldn't be concerned about this and there's a very good reason why bitcoin has rallied a massive amount in the last two weeks. In fact, ever since we bottomed out at and a half thousand dollars on the 21st of july, we rallied 43 in the span of 10 days, looking at the td sequential, we can see that bitcoin got massively overextended. We hit a nine flash on the td sequential. We rallied pretty far outside of the bollinger bands. Lux algo is incredibly bullish, but even that would tell you like hey guys. We need to calm down a little bit. We need to pump the brakes. So, yes, we needed a correction. This has been a very healthy thing, so far make no mistake. A 10 correction after a 40 rally is not a bad thing. It'S not the end of the rally. It is currently simply healthy consolidation that we should be happy about, but i do want to remind you of something and that's what lux algo is saying, because lux algo is showing a strong buy signal for the first time in three months

The last time we saw a buy signal on lux algo was in april. It is now august. This is a very good sign for anyone looking for long-term upwards potential and by the way, guys, if you haven't already signed up for lux algo, you should. The link is in the description box down below, if you, if you use coupon code, jeb jebb you'll get 20 off at checkout

Now, there's a few more things. I want to talk about here on bitcoin and they all show up down on the four hourly chart. Bitcoin currently, even though it's in a correction still has a series of higher highs and higher lows, i'm going to clean this chart up just a little bit and what i want to show you is this. We see three lows right here and we also see four highs right here

All of them are higher than their previous counterparts. We'Ve seen one two three higher lows and one two three four higher highs. That indicates that even on the four hourly chart we are in an uptrend. Now, if we do start seeing bitcoin pull back below the bottom of around thirty eight thousand uh thirty eight and a half thousand dollars, then yes, we would technically be in a four hour. Downtrend, but i am expecting that to happen. In fact, i personally think that we're gon na see bitcoin pull back down to this 36 and a half thousand to 37 and a half thousand dollar region, and the reason is we just had a massive rally

Bitcoin has not seen a massive rally happen in quite some time, and in this case i think that bitcoin needs to reset just a little bit more. I think eight and a half percent might not have been quite enough. I'D like to see bitcoin pull back. 10 12, 13, 14, and doing so would pull us back down to this level. So there's two major levels of support at play: right now, there's this level based on this low here on the 30th of july. This one is at 38 and a half thousand dollars, and then we also have a level of support right here at 36 and a half thousand dollars. I'M expecting that bitcoin is going to pull back somewhere in this region. Probably do something like a double or a triple bottom and then we're going to rally. But the point here is that this small correction is just a smaller movement that is nested inside of the longer term uptrend. I think in the long run, bitcoin is moving to the upside here, also guys make sure to smash that like button, if you haven't already, we got some more technical analysis that we want to do here, because there's actually something else

I'M seeing on the daily chart that might be of interest to you, and that is this. There is currently a spinning top showing up on the daily chart. This is a signal that is coming in based on a low uh, based on a long, lower shadow and a long upper shadow. We also see right here that there is a relatively small body. This is called a spinning top because well it looks like a spinning top. It looks like what you might call a dreidel uh. It looks like one of those little tops that you spam

These are actually very important signals and the reason they're very important signals is because they indicate indecision in the market. They indicate that the market is well indecisive and that it doesn't really know where it wants to go. It indicates that there's a stalemate going on between the bulls and the bears. The reason is this long upper shadow indicates that the bulls tried and failed, and this long lower shadow indicates the bears, tried and failed a lot of times. You'Ll see it showing up at the bottom of a trend and the reason you'll see it show up at the bottom of a trend or at the top of a trend is because when the market is moving up before it can move down, there's a moment up There, where you're not moving at all, that's what this looks like when you're moving down before you start moving up, there's a moment where you're not moving at all and that's what we're seeing right here

So there is actually an argument to be made that we may have already found our bottom at 38 and a half thousand dollars. The reason - and this is a great question tim - the reason that i think that we might be headed down to between 36 and 38 000 is because we've seen such a major rally that just typically seems to be about the percentage that you would see, pull back A lot of times you'll see the market pull back about a third to maybe uh, two-fifths of the way that it moved to the upside. So that means that if we move to the upside, what uh twelve thousand dollars, then we might be expecting to see bitcoin move to the downside between three and five thousand dollars. If we move down uh excuse me between, like uh yeah, about three and five thousand dollars. So if we did that, then we would probably move um somewhere between forty thousand dollars all the way down to maybe thirty seven thousand dollars, which is roughly where i'm seeing that prediction of moving down to those support levels is based off of where the support levels Are not so much a whole lot else, but there is one thing that i do want to show you and that's

This bitcoin broke above the 100 daily simple moving average right here, i'm going to turn off the 200 just to make it clear. We broke above the 100 daily simple moving average for the span of three days and we're currently below it. So this is an important thing. Bitcoin breaking above this is actually very important, because the 100 daily simple, moving average is oftentimes the thing that maintains the bull market as a level of support notice back during 2016 and 17. We would consistently stay above this level and if we fell below, we wouldn't fall below it very far or for very long. We would consistently bounce off of it and it would be the level that the market would generally pull back to for us to continue. The rally now, in this case, we've fallen far below the 100 daily simple moving average, and a lot of people have used this to say that we are now in a bear market. I don't think that's true, i think we're in a bull market, but we rallied too far too quick and we needed a correction in this case getting above the 100 daily simple, moving average would be a very major step for the bulls and luckily, even though we're Not currently, above it, we are very close

We did manage to break above it and another thing notice. We didn't. We had a non-engulfing candlestick right here we saw a major green candlestick and then a much smaller red candlestick. This indicates that the bears are in charge, but not by very much. This movement over the last three days shows that the bears are in power but they're not very strong. This is exactly what we want to see. Bitcoin moved to the upside forty percent twelve thousand dollars in ten days, and whenever you see that happen, there needs to be a correction. Luckily, for us, this correction looks like it's probably going to bottom out here around the next somewhere around 37 to 30, eight and a half thousand dollars

The other thing i want to point out is the fibonacci, and i want to look for some levels of support here. If we bring out the fibonacci, we can see that there are several levels of support that we could be looking for, namely the 23.6 level, which is where we are right now is sitting exactly where we are right now. In fact, bitcoin is currently trading at 39. 457, this is sitting at 39 463 dollars. So this is the level that we're bouncing off of right now it very well may hold. If it doesn't, then we also find another level, which is the 38.2 level, which is the most likely retracement. That bitcoin would go to sitting right around 37 and a half thousand dollars now, like, i said guys, there is a strong argument to be made about okay, we're gon na bottom out at 39.5, or we're going to bottom out at 36.5. We'Re going to bottom out at 38 or 38 and a half point is it doesn't really matter where exactly the bottom is? The point is that bitcoin is going through a small retracement and i think, we're gon na rally from here