From the chart, BTC is replicating a close crashing pattern like the previous major crash.
The yellow, green and red areas were replicated almost similarly in the same regions. You can also spot the blue forming at a crucial support and this could lead to retesting the 200 Smma, before it finally dives to new lows.
Bitcoin (BTC) Price Today – BTC / USD
# Name Price 24H % 1 $7,216.65
This present pattern may behave differently if it continues a downward slope and a similar crashing pattern.
At this time, we must be patient and study the market more before injecting money in this correcting digital asset. However, BTC seems far stronger than the main crash of 2014 when you consider the blue area. This area did not go as low as the previous crash and this because the 6.000$ area is mainly at the mining cost profitability edge. So it is expected to see a stronger resistance in this area this year.
Will bitcoin (BTC) recover?
Watch the 0.618 and 0.5 Fibonacci levels closely before buying bitcoin. Sell levels are expected to be 10000$-12000$. Currently, we can break one crucial level 6000$ to fall on 5000$ and perhaps 4000$ before jumping to 10000$-12000$.
The volume is decreasing as you can see on the chart. This implies that no buyer/sellers are available and trading volume is low. Traders are waiting in fiat since the volatility has reduced thanks to the bears and bulls.
This may be the last fall for bitcoin after it will rally to 10000$-12000$.
Some basics you should know
1. Miners will not stop mining if the price goes below the 5000$ level. In so many countries, you can mine at a cheaper cost. China still mines with a reduced cost of 3000$.
2. In recent times, SEC opened CBOE ETF filing for comment from the public. If the commission approve BTC ETFs, it may help the market for a while.