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@MrShareLock analytics:
The long-lasting sideways movement in the cryptocurrency market ended with a sharp crash. The BTC/USD pair broke through the lower consolidation limit at about $6,300 and in a matter of hours updated the annual minimums.
You should not look for any news occasion concerning this event. Usually, such crashes occur when market makers see the weakness of buyers and the ability to easily knock small players out of their positions. After breaking through an important level, the price accelerates due to the avalanche of triggered stop orders.
The main question for traders and investors is what to expect from the market in the future?
If you are considering opening of speculative positions, then it is recommended to avoid emotional decisions and catching of knives (big red candles) in such situations, especially if you are trading with a marginal leverage.
Consolidation lasted for several months, so avalanches of triggered stops can go one after another.
It is worth waiting for the development of the situation. If the bulls in BTC/USD succeed to buy back the drawdown and return the price above $6000-6200 in a few sessions, this will be a powerful signal for long-term market growth up to $10,000. If the fall drags on, you will need to look for new levels of support and resistance and build your strategy based on them.
The situation in altcoins will depend entirely on the benchmark, so we don’t expect an independent game until the situation is clarified in BTC/USD.
