Bitcoin shocked us all. It traded at 5500 USD at some point today, in total defiance to all the technical analysis laws we have come to study.

It quickly rebounded to the higher 5900 range, but these are great prices to get Bitcoin at nonetheless.

I have created this post as a guide to what the markets are doing, as well as to give reasons why I feel you should buy this dip.

Given the past history of my past price analysis performance posts, it seems that only a small category of people actually enjoy reading boring technical analysis.

It is for this reason that I will start this post with why I feel you should buy this dip. The analysis will come last for those that enjoy reading it.

Grab your popcorn after clicking that like button. This is going to be a detailed post.

Ok. Why the heck should you buy something that is going down?

I see that question like this: "Bitcoin was valued at 10k a few weeks ago. It is now valued at 5k. You're getting the same amount for half the price. It's basically a 50% discount. Bitcoin is on sale."

Bitcoin is on sale for $5000 if you ask me.

I was very lucky to buy some Bitcoin at $5600, and I got some decent volume in there. I would be selling off that stash after the halving.

That's my only reason to buy at this price. I don't believe in predicting prices. But if you see something on sale from 10k to 5k, you buy as much as you can.

Ok. On to the analysis.

If you won't read this side, please appreciate the work I put into it. I would really appreciate it.

As usual with my analyses, we start with a chart.

First off, take s look at that volume. 1.3billion dollars in bear money. Let's use that as our basis for this analysis.

Bitcoin saw a chance at redemption when it almost broke its resistance at $9100. It seemed like that resistance test really pissed off the bears, as they sold the price down to the low at $5550.

This was following severe bearish movement in Bitcoin, as well as an inability to keep support levels.

The RSI indicator has also been in oversold conditions since Monday. It is slowly approaching level 0, at which point maximum oversold condition would have been reached.

If this happens, it is inevitable that a rally to test the resistance at 6500 would occur. Should we break that resistance, we might see Bitcoin rally all the way to 10500 again. But this will take at least 3-4 days to complete.

The worst case bearish scenario is that Bitcoin revisits the low 2000 levels again, at which point investors who have been holding out since 10500 for a chance to sell will finally say "Uncle" and drive the price down further.

(Actually, the worst case scenario is that the fundamentalists win, and bitcoin goes down to their perceived value of it: $0)

That said, only time would tell. Math isn't working currently.

Thanks for reading. Please like this post if you enjoyed it.