#Volatility
#MarketCorrection
#altcoinscrash

Is the market starting to retrace?

Today, there has been a confirmed rise in the level of volatility.
We first saw some movements on the altcoins and later $BTC confirmed the phenomenon.
If you look at low market capitalisation altcoins you can notice a 6-12% price fall today. This is not much (yet) but it may give some indication about what will come. These are illiquid markets therefore as soon as larger sellers enter, the price falls.
A few hours later $BTC had a nice rise up for about 3 hours. The movement had some momentum which could have indicated an uptrend however after reaching 100,400 the price fell with even more momentum. It took only 35 minutes for the market to erase these 3 hours of price appreciation.
This is the largest 1 hour candle we have had since the flash crash to 90,000. The Bollinger bands are widening, price is remaining close to the lower band (violet); apparently there is little strength in the price to move back up therefore the probability we are going lower is now very high.
The risk is a rise in volatility that could drag the altcoins down very quickly so be careful with leverage: in such moments it is usually better not to use any.
Looking at the glass half full, a spike in volatility could be an opportunity to buy some altcoins at very discounted prices. Remember that a 40% price decline is not that much for many altcoins especially if they have risen recently 3X or more.