Bitcoin Just Plunged $700 Upon Reaching $9,060, Correction or Reason To Panic?

[n0ne]

$9000 was a long expected price barrier of the year. Once after reaching the same falling low of more than $700 is simply the correction of the market. Some get into panic and starts to sell off. This is the common thing that is taking place for a long. Very few could've made use of the right occasion, maybe we can expect price fluctuation in such a level until the $10000 barrier is reached.

[magneto]

Honestly, I'm not that concerned.

BTC has been pumping lately without much corrections, and something was obviously going to have to give as a matter of time.

For long term holders of BTC longs this shouldn't be a concern whatsoever, given the fact that it is normal market activity that has been seen countless times before.

There is already some recovery as well, with prices now above $8660. I wouldn't doubt that in a few days we'll be testing the $9k resistance once again.

[teosanru]

Today we got another reminder that volatility is working both ways.

Bitcoin has fabulous times since entering the new decade. However, when we see such a parabolic move to the upside, we can expect volatile moves to the other side, as well.

Just yesterday, we mentioned Bitcoin price reaching its first major test – the 200-days moving average line (marked light green on the following chart). Many analysts see this tough resistance as the barrier between Bear and Bull markets.

Today, Bitcoin surpassed the crucial moving average line (roughly around $9060). However, shortly after recording a daily high (and year to date) at $9188 (Bitstamp), we received a MEGA dump.

Besides, on the 4-hour chart, we can clearly see Bitcoin reaching the top area of the marked ascending channel.

Bitcoin lost over $700, plunging to the $8400 old resistance level. As of writing these lines, Bitcoin had recovered a bit, trading above the $8600 resistance level.


Current Price in Binance 1 minute chart:

I think the $8400 point is pretty crucial I think. There can be two cases in this instance. 8400 doesn't really looks like a great support to me which is why I think we might drop much far below if we hit that point. Have a look here:


Now at these points when BTC would reach 8400 there would be three things happening together:

1. There would be a negative crossover on Stochastic RSI which would look bearish. Thus indicating market losing momentum.
2. Then there is RSI which could possible go into oversold zone if market loses momentum. There is a slight chance that we take a support on the bottom line or oversold line and then jump up but considering other parameters this chance looks slim.
3. You forgot to use some very fast average on the chart if you would use any such average you would see a Moving average crossover to happening around such a point so I think 8400 wouldn't be able to hold.

My conclusion: we would be able to break 8400 and this break would be for good. We will possible move towards 8000 and then jump back from there and then BTC could be on a very good upward trending channel highlighting a healthy bull run.

[hello_good_sir]

No reason to panic.

A -5% correction in the crypto space is anything but out of the ordinary. We've seen scale backs of way higher than this, even. Markets are already stabilizing at around the $8.6-8.7k region which is reflective of the bullish sentiment that is still rampant within the market.

There is no reason to believe that this is all of a sudden a trend reversal and BTC will go to sub-$8k once again. In fact, longs are still paying shorts a premium on most derivatives exchanges which is indicative of sentiment.

[exstasie]

I copied a picture of @exstasie



The 200MA on the daily Chart is very strong and for me it doesn't look good. What do you guys think ?

The 200MA resistance was more or less expected. I've been speculating for some time that bears would attempt a selloff there.

This dump does not appear to have legs. It's not obvious to me that $9,200 is an inflection point. It's probably just a short term pit stop.

Ranging above $8,463 (Bitstamp) keeps the bullish scenario intact. Ideally, the market will float back towards $9K and consolidate sideways for several days.

[alexsandria]

Hitting the $9k mark seemed to have triggered massive sells since buyers from lower $8000 or even $7000 have taken their profit. There's nothing to panic, and no FUD to feel, it's just because of normal volatility and trading activity that sets off these dumps. As soon as it hit $9k, investors must have flooded the sell orders in hopes of getting out of the market at gains of over 12%.

They fear of losing the opportunity which indeed happen. $9,000 was somehow close yet quite tough achieve for some reason. That is why there are massive sell when BTC hit it which leads to downfall. Well, anyway we are quite steady and strong at $8,600 mark. We might be able to see again 9k may be after few weeks.

[michellee]

I think bitcoin price now is on the correction for a while, but unfortunately, the bitcoin price down deeper than we thought. But I don't feel afraid or worry because I am sure that the price will be back to $9000 and even the price will increase so high. This time we have a good time to buy more bitcoin because with seeing the $8600 of the price, we can buy bitcoin at a low price. But still, you need to analyze more to find what price you should buy.

[ashmodeus]

just a little correction,no need to big panic.
btw,i already see that news on cryptopotato and you didn't provide the source link?
https://cryptopotato.com/bitcoin-just-plunged-700-upon-reaching-the-ma-200-healthy-correction-or-reason-to-panic-price-analysis-overview/

[gabbie2010]

Price movement is not one traffic for any bullish or bearish market there must be a correction I am unperturbed or unmoved by almost $700 price correction of bitcoin in the last few days, obviously this had been a regular occurrence in the price movement of bitcoin based on price history, now it is as if the price is held by the support and rejected at $8600 invariably the price reaching $9000 above is quite feasible before the end of January.

[slaman29]

Everything is under control. Dipping down $700 is normal if the rise was also as high or even higher. This is nothing serious to panic. This is a normal correction. In other words, this is the buying time in between pumps.

Except it only dropped $700 because it hit such a strange and sudden high too (I say strange and sudden because in the context of the title for op of course). Everything is normal in these hundred dollar ranges in bitcoin. I would say 10% is the expected volatility curve in any given day, considering the past few years especially.

[bitcoindusts]

Funny how OP got worried about the $700 dip, there are far more worse cases of Bitcoin where Bitcoin even crash for more than thousands of dollar in just less than a day.  This is normal with highly volatile asset so there is nothing to panic here.  People who bought under $8k  are shorting to reap their profit.  After all the selling is done, we can see another rally so there is no need to worry.

[john1010]

Funny how OP got worried about the $700 dip, there are far more worse cases of Bitcoin where Bitcoin even crash for more than thousands of dollar in just less than a day.  This is normal with highly volatile asset so there is nothing to panic here.  People who bought under $8k  are shorting to reap their profit.  After all the selling is done, we can see another rally so there is no need to worry.

Im not much worried sir  I just only open a discussion thread to gather trade analytic and information.

[LogitechMouse]

Just a short correction for me and it is normal already.

The $9200 price is the price where investors and traders get their profit already. No reason to panic if you are a long term investor . The only problem is that if you bought Bitcoin at the top but it is ok as long as you can hold it .

My personal Support is ~$8500 and the resistance is ~$9200. Anything go above or below at that level will determine the next move of Bitcoin

[The Sceptical Chymist]

Panic?  Because bitcoin dropped back to where it was a few days ago?  My, what a short memory some people have--it was just a couple of weeks ago that bitcoin was around $6600.  Now that it's $2k higher than that, I would say that there's absolutely no need to panic.  On the contrary, it's almost cause for celebration.

Im not much worried sir  I just only open a discussion thread to gather trade analytic and information.

Then don't start threads with clickbait titles like this.  If you're not worried and don't think there's cause to be, why ask the question as to whether people should panic?  Makes no sense to me.

[bluebit25]

Certainly this is a slight correction of Bitcoin, and it makes us buy bitcoin at a cheaper price. Don't panic and be scared because the price won't be able to fall too deep, 8600 $ is a good price so we can buy and wait halving. The bull market is still there so after the bitcoin price is adjusted I believe the price will continue to go up and conquer ATH this year.

[ultrloa]

Relax guys for what I see the current dump is not at alert level and it's so pathetic to get panic for this certain situations where I can say still manageable. And if you can see a dump then treat it as opportunity since most provably the price would get back soon on where current high stop.

$8600 is still reasonable compare to the past price so people should relax and keep there cool.

[danherbias07]

Yes, a normal one.
Looks good though. You did great finding that out. I am not really the type to monitor every small movement of it. Something like this.
Just hundred of dollars. But to traders this might be one important thing. Every dollar will count for them.

But looking at the google graph, there seems to be just $300 difference in them. Yeah, exchanges really have different prices.

[3la9l_kolbaCa]

It’s probably just a small correction but who knows. If it’s something bigger, then I will look for a price to buy more Bitcoins.

Looks promising right now, and for me I would not put that unto a mindset that having panic is the chance to occur. Let's be strong while the market has started recovering what has been lost from previous years. Right now we're heading to the top and hopefully there's no certain resistance that might pull the price down.

[Wexlike]

It’s probably just a small correction but who knows. If it’s something bigger, then I will look for a price to buy more Bitcoins.

Looks promising right now, and for me I would not put that unto a mindset that having panic is the chance to occur. Let's be strong while the market has started recovering what has been lost from previous years. Right now we're heading to the top and hopefully there's no certain resistance that might pull the price down.

I'm on the same page. Additionally I like that several high profile speculators are on the same line of thinking.

For example, dmwardjr strongly expects continue upward pressure:


https://bitcointalk.org/index.php?topic=5140701.msg53653049#msg53653049

[darkangel11]

It’s probably just a small correction but who knows. If it’s something bigger, then I will look for a price to buy more Bitcoins.

Looks promising right now, and for me I would not put that unto a mindset that having panic is the chance to occur. Let's be strong while the market has started recovering what has been lost from previous years. Right now we're heading to the top and hopefully there's no certain resistance that might pull the price down.

There was a small dump but people are not buying it. You can see that the trend is bullish by how the market reacts to manipulators.
In a weak market every small selloff makes people scared but in a strong market the sellers are ignored and bought. All they can do is slow down the trend but they can't stop it. If we go back to where we came from in the next few weeks those who sold yesterday will buy back again.