Where we are is overbought. We needed a breather, and a little crash will do just as well.
With Bitcoin, exponential growth tends to continue until it gets even faster than exponential, at which point it is bound to correct soon. And usually it will overcorrect. Then it usually continues its trend until that trend is exhausted. I definitely do not think this trend (of the past few weeks) is near exhaustion. A correction at the hugely overbought levels of a day or two ago was practically a foregone conclusion. I was expecting it and hoping for it (or for flatlining, but Bitcoin gets bored with that). We still have a few more days of correcting to do before the trend catches up to current price levels, so further correction is welcomed and expected. Then we might overcorrect a bit then get back on the uptrend, or just get straight back on the uptrend.
So far the bouts of selling we are seeing now could hardly be any healthier and expected. It's the quintessential healthy retracement. And probably has a little more correcting to do. Then up!
normally it goes, up, down, flat, going from down directly to up again is highly unlikely...
So after the down, there comes a flat phase first
That's probably true, so we consolidate until some pressure builds up, then gush higher. Actually we've already consolidated long enough to go up again, but since everything in the market moves is embellished (up too high, crash too low, consolidate for too long), consolidation will probably also last a few more days.
