Remember my last post? Where I said that Bitcoin may likely correct to support before blasting through it's 11k resistance?

Well, we have reached the stage of correction.

You can check out the post here. Check the date to see that my analysis was correct and I'm not faking this.

Here is a chart to aid visualisation:

Bitcoin is currently experiencing a huge correction back to support at the 10.15k-10.25k range. As I called out earlier in my previous post(linked above), this is extremely necessary for the jump to 11k. The market works this way.

As we can see from the chart I pasted above, the downward move was created by an engulfment bearish candle. The move was also quite contained by the Bollinger bands, meaning that the move won't last very long. We might even see a reversal on Valentine's Day.

The volume of sell offs is quite higher than the volume of buy offs though, further strengthening the fact that the move will last till the end of today in the least.

Bitcoin is in a temporary downtrend on the 30 minute chart, but it is touching the top Bollinger band on the 4 hour and 12 hour charts. Here is a picture to aid visualisation:

The downward move is also marked by an engulfment pattern on the 4 hour, although this means nothing given that prices are at the top band, and also the fact that RSI shows room for growth.

The sell off volume is also much lower than the buying volume, so that is definitely a good sign for things to come.

This is all from the bullish perspective though.

On the bearish side of things, we might see a further plunge to the 9.7k mark even. This will be the final stop for the downtrend however, as we have scaled well past that level.

Should a downtrend occur to that level, the move upward would then be to 13k, not to 11k. 

As always do your own research before using these steps.

All we can do now is wait for tomorrow to come. 

Thank you for reading.

PS: if you read the post I linked above, you'd remember I longed at 10250. I subsequently shorted that position at yesterday's high, and have longed at 10310 today. I will update you on what's happens tomorrow.