Hi,
I am an absolute newby to this forum, this is my first post. On the other hand, I have been trading financial assets for quite some time.
I expected today's BTC dip, whatever the supposed reason for it would come out to be (i.e. fake news from China) on the basis of :
1. a simple analysis of trading volumes analyzed on various time frames
2. the application of Fibonacci retracement levels to the previous leg up
3. the application of Eliot's wave count to the previous leg up (impulse wave) and to the current leg down (correction wave)
Technical analysis is not science and its various tools are not always churning out foolproof answers. Some tools work better ( = more often and on more type of financial assets) than others, but even those can fail ( = give false signals). In my experience, Eliot and Fibonacci have the best predictive power because they are not based on averages of past datas but on eternal or, at least, recurrent human behavioural patterns.
This said, I put out my 5 cents of wisdom to say that the market will find its way to correct lower before it resumes its way up. I have set a number of buying orders at decreasing price levels between 4000 and 3000 USD so, to put my mouth where my money is, this is what I can recommend to others as well.
Good trades everybody !
Sure your post sounds reasonable newbie; however, you need to account for s-curve adoption, metcalfe networking principles and that bitcoin is an immature technology that is also going through fundamental extreme attacks and even weirdness in the cryptospace on a broader level with a variety of random and extreme performances of ICOs and alt coins, and that is where the fucktard over reliance on technical analysis frequently screws up with their assertions about supposed inevitable needs for correction in a kind of false equivalency about bitcoin being a supposed mature market.
Sure you could be correct this time (a stopped clock is correct twice a day), but please present your technical analysis with a bit more grains of salt and accounting for both the immature price finding aspect of bitcoin and the s-curve analysis which are important factors to not leave out when you are arriving at your supposed "reasonable" technical analysis conclusions and advices.
I agree with everything you say and there certainly are specific dynamics in the bitcoin market which can throw off the scale many a technical indicator, but still the people trading it have , in average, the same psychological framework as the people active, say, in the Forex market or the stock market. Actually, I dare say, the bitcoin market seem to have attracted large numbers of new and rather inexperienced traders that fall easily prey of the professionals that, make no mistake, are plying this market too. It is enough to look at 5 minutes charts and the order book to see the so called "whales" gobbling up and down the plancton as they please.
The technology behind bitcoin maybe new, but the mindset of people trading it seems to be the usual on and for this reason it seems to me - and this is just my humble opinion, as I do not presume to the express the truth - that certain technical analysis tools like Fibonacci retracements and Elliot waves do have some predictive power, until of course they are proven wrong because the first rule of any trader should be always to act upon othe price & volume action in front of his eyes rather than the theories (about what price & volume should do) in holds in his mind.
At the risk of attracting some criticism, I say also that many of the traders seem to couple their inexperience with an equal amount of arrogance, which expresses itself in the form of a refusal to apply to bitcoins trading the tools of conventional technical analysis. It is absolutely true that TA tools do not work all the time nor on all assets, but this is true not only for bitcoins but also for other traditional financiall assets. Again it is true that certain TA tools are extrapolations of past price action with scarce predictive power in a market so young and exuberant as the bitcoins. This said, having some kind of tool - that you can fully customize according to your own assumptions - to analyse and dissect the price & volume action to try and make sense of it, is in my opinion better than having none and relying on hearsay or pump & dump speculations.
To conclude, based on Fibonacci and Elliot, I think BTC is undergoing a correction within an uptrend, that will resume once the correction is done. I think this correction will reach down to about 3800 USD as a minimum and 2800 USD as a maximum and extend itself over 3-10 trading days depending on how deep it will reach. A break over 4670 USD in strong volumes would invalidate my hypothesis.
I do not recommend to sell BTC short , unless the exchange you are using guarantees you very swift trade executions, because the drop could stop and reverse very quickly due to any number of reasons because, as I said, the underlying trend is upwards.
If you want to own BTC, buy at regular intervals on the way down. If you own BTC, sell some of it at present levels and rebuy the same quantity at lower levels on the way down.
This is what I am going to do and, of course, I might be wrong and I will pay the price of errors
) 
