We see this dip as healthy.
If you a looking to enter the market, Gann and Fibonacci work show a zone in Bitcoin (BTC) between $7,629 and $7,400 as the best place to enter (Figure 1).
Looking at Bitcoin (BTC) on BitMEX the best level for an entry point might be a Gann level at $7,500 (work not shown). If XBTUSD hits $7,500 and holds, $10,000 may be next.
Looking at Ethereum (ETH), the zone between $234 and $221 is the best area of support. $234 is the 38% retracement of the recent up move (Figure 2). $221 is the 50% retracement of the recent up move and a huge Gann point. If Ethereum (ETH) hits $221 and bounces, $400 might be next.
Bottom Line: Dips like this can be scary, but they are healthy. Given our intermediate term view, these dips could be a big opportunity to initiate trading long positions.
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