A perfect explanation for Bitcoin
Hello Everyone,
Bitcoin has seen pain these last few weeks. There are traders that think bitcoin is still in a bull market and traders that have turned to the bear side. Here are my thoughts with analysis:
Bitcoin has done a perfect wyckoff distribution that resulted in a massive head and shoulders pattern forming then being confirmed. Hence why price dropped 50% rather quickly. Bitcoin seems to be in a state of "limbo" trading between $30,000 and $40,000 for the past few weeks. What does this mean? In my opinion, I believe it is setting up for the next leg down. This price action looks perfect for consolidation for another move down. It makes sense as bitcoin just saw a head and shoulders on the daily confirmed with very bearish price action.
Here's the question everyone is asking: is Bitcoin in a bear market?
The answer: Yes. Technically Bitcoin is in a bear market as it is below major bullish indicators such as the Daily 200 Moving average, the 21 Exponential Moving average on the Weekly, below the transition point on daily MACD, etc. I personally believe a lot of traders are in denial and that bitcoin did see a parabolic advance over the last year. I couldn't tell you how long this bear market will last but I imagine a few months to allow things to cool down and get people out of all of these shit coins.
Here is my technical analysis:
1. Close rejection of the 200 MA Daily with rejection of previous support. - There is a giant descending triangle that bitcoin broke down from. It rejected previous support.
2. Price Action is bearish on the way down and on the way up for retesting major support. - Fakeout city.
3. Clear Wyckoff distribution on the Daily/Weekly timeframes. - This indicates the market is looking for downside sell off.
4. MACD is heavily bearish with waning buying momentum. - This indicates the market is not yet ready to turn back into major buying.
5. RSI bounced perfectly off diagonal resistance. - I am expecting another move down in the next 1-3 days.
6. The "Breakout" of the symmetrical triangle looks fake. Volume is not validating and it was immediately rejected by previous major support levels.
In my opinion, either short or DCA. Buy a small amount each week or each dip and accumulate on the way down. I do not think $64,000 is the max price for bitcoin. I have no idea where the bottom is except a guess around $17,500. DCAing is the perfect way to protect your investment and achieving gains. It has been the #1 trading strategy all throughout bitcoin's lifetime.
Hopefully this helps some of you understand this market and protect your investments.
As always, be patient, use risk management, and good luck trading!
Bitcoin has seen pain these last few weeks. There are traders that think bitcoin is still in a bull market and traders that have turned to the bear side. Here are my thoughts with analysis:
Bitcoin has done a perfect wyckoff distribution that resulted in a massive head and shoulders pattern forming then being confirmed. Hence why price dropped 50% rather quickly. Bitcoin seems to be in a state of "limbo" trading between $30,000 and $40,000 for the past few weeks. What does this mean? In my opinion, I believe it is setting up for the next leg down. This price action looks perfect for consolidation for another move down. It makes sense as bitcoin just saw a head and shoulders on the daily confirmed with very bearish price action.
Here's the question everyone is asking: is Bitcoin in a bear market?
The answer: Yes. Technically Bitcoin is in a bear market as it is below major bullish indicators such as the Daily 200 Moving average, the 21 Exponential Moving average on the Weekly, below the transition point on daily MACD, etc. I personally believe a lot of traders are in denial and that bitcoin did see a parabolic advance over the last year. I couldn't tell you how long this bear market will last but I imagine a few months to allow things to cool down and get people out of all of these shit coins.
Here is my technical analysis:
1. Close rejection of the 200 MA Daily with rejection of previous support. - There is a giant descending triangle that bitcoin broke down from. It rejected previous support.
2. Price Action is bearish on the way down and on the way up for retesting major support. - Fakeout city.
3. Clear Wyckoff distribution on the Daily/Weekly timeframes. - This indicates the market is looking for downside sell off.
4. MACD is heavily bearish with waning buying momentum. - This indicates the market is not yet ready to turn back into major buying.
5. RSI bounced perfectly off diagonal resistance. - I am expecting another move down in the next 1-3 days.
6. The "Breakout" of the symmetrical triangle looks fake. Volume is not validating and it was immediately rejected by previous major support levels.
In my opinion, either short or DCA. Buy a small amount each week or each dip and accumulate on the way down. I do not think $64,000 is the max price for bitcoin. I have no idea where the bottom is except a guess around $17,500. DCAing is the perfect way to protect your investment and achieving gains. It has been the #1 trading strategy all throughout bitcoin's lifetime.
Hopefully this helps some of you understand this market and protect your investments.
As always, be patient, use risk management, and good luck trading!
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