Hey Cryptofriends!
As predicted in my previous post, breaking below the reverse triangle (purple) ignited mass sell-offs as you can see from the trading volume, which literally exploded today. The 8.8k - 9k support zone was tested, we actually dropped down all the way to around 8.4k at one point. Will we be seeing a 100% Fib retracement down to 5.6k?
Honestly, I hope not as this would really hurt the cryptocurrency market. Market cap has now declined to less than 500bn (463bn at time of posting this) and it seems like there has been a lot of loss in market confidence. The bears are getting fat, and bulls are nowhere to be seen.
What needs to happen next? I see trading opportunities based on daily price action, however we are clearly still on a strong downtrend and the next test of faith is the 7.6k - 8k level. If that doesn't hold, we're in for a longer ride until the market recovers.
So what to do? Well, this isn't financial advice but don't panic-sell if you can afford to hold - this is just a market cycle and once the bulls take over it may go VERY fast. I am getting the great altcoins that are cheaper now than they have ever been, in anticipation for the end of this bear trend. What's your plan?
