Here’s a three month log chart for you. Hopefully you can make it out. I’ve plotted all of the three channels I’ve followed throughout the course of this bull run.
I guess I’ll start with the most recent and by far the steepest one. The last time I drew in the channel I guessed where the top of the trend line might be and said we might never test it. Well guess what ? We tested that trend line all right, that test was the peak! Then immediately plummeted right through the bottom of that channel.
I drew a red arrow in case you missed the peak. lol. Looks like there might have been support from somewhere near a parallel line equal distance below the bottom of that channel. I don’t know, but I drew it in anyway. Maybe the support was actually the mid line of the second channel which I haven’t actually drawn.
Now we are lying in the middle of the second channel which I followed throughout March which was already a little steeper than the first channel I followed. Currently the top of the very first channel and the bottom of the second channel are both converging near $100. Will this provide strong support if we fall further? We just have to wait and see.
In light of this chart, was the crash really that bad? We’ve dropped back to the previous channel and down to price levels that only a couple of weeks ago seemed incredibly high.
For me the jury is still out if that crash was just a correction or if it was the top. I think a lot depends on the sentiment of the bitcoin community. Theres a lot of emotion out there just now. How will the dust settle?