Bitcoin broke below critical support in the upper $13,000s this morning ($13,500 - $13,800) and is now sitting around $13k at the time of writing this. Bitcoin has consolidated around these levels for the majority of the past week and has found significant support there.
Last time we broke below this level, Bitcoin bounced back at the lower $13,000s. This time, Bitcoin broke below $13k. As a result of this, I suspect the upper $13k levels will now act as substantial resistance which will be difficult to push past. Given these factors, I suspect it is more likely Bitcoin continues to the downside rather than upside in the short-term.
I forgot to mention in the video, but I will NOT be selling any Bitcoin. I might end up buying more if we continue lower, although I won't at these current levels.
Furthermore, Ether has breached a critical resistance relative to Bitcoin at 5.5m Satoshi (0.055 BTC). I've stated for some time now that anywhere between 0.055 BTC to 0.06 BTC is a good area to shift some Ether into Bitcoin, with the next target being roughly 0.07 BTC. If Bitcoin tanks like it did before Christmas, I don't expect this ETH/BTC to remain as high as it currently is. However, it is worth noting that Ether is holding its own relative to Bitcoin at the time of writing this.
On the topic of Bitcoin dominance, we've fallen below 40% mostly as the result of the bull run in Ripple. Altcoins have, in general, outperformed Bitcoin in the past week. I continue to be bullish on Bitcoin relative to altcoins, even moreso during dips like these, so if you would like to keep your exposure to the market, I continue to prefer Bitcoin and selectiveness with altcoins (rather than a basket-type approach).
What are your thoughts on the Bitcoin dip? Opportunity or trap? For now, I vote trap. Let me know what you think in the comments below.
P.S: None of my thoughts have anything to do with headlines for South Korea.