Based on the latest chart of Bitcoin, it looks like it is undergoing a major correction.
After hitting highs of almost $20k, it has started to form a corrective pattern between $12k and $17k, and there could be more to come.
After the first initial move down (the blue sell arrow) which was mentioned in our previous blog post, there was a corrective a-b-c wave, which could be a corrective wave within a larger corrective wave, with the 2 pink rectangles being wave a and wave c respectively.
If that is the case, the end of wave c will be around $9k, which is quite close to where the old trendline is.
Lastly, we also pulled out a Fibonacci Retracement on the whole price history of Bitcoin, and drew in a red rectangle to indicate the 50-61.8% retracement range. For major corrections, this is where it usually ends. If it breaks below the red rectangle, then it becomes a reversal instead of a correction. The red rectangle is between $7.5k and $10k.
For conservative long-term investor, you can wait to accumulate inside the red rectangle.
However, if price goes above point c (around $17k), then it would invalidate the pattern, and the uptrend would likely continue to surpass $20k, so I am prepared to buy on a break above $17k as well.