We have now retested the descending resistance line after breaking down from our long term support line as predicted in my previous posts. Will we now retest our descending support line as previous market cycles would suggest? Well, the bulls would have to take out the high at 10.5k and put in a higher high to invalidate this structure. At the very least, they must defend the low at 3.8k and put in a higher low to begin reversing this overwhelmingly bearish market structure. I want you to observe the similarities between the last two market cycles specifically for more clarity. Even the first bear bitcoin bear market had identical structure. Obviously, the moves I have noted are subjective but their purpose is to show my thinking.
Personally, I entered a short ladder in the mid 9ks and I am waiting patiently to see if bitcoin manages to invalidate this fractal that we have been following for years. Please note that I am not a permabear and I am waiting to accumulate heavily for the next bull market if this crash happens. You can be sure that people will be calling for 1k once we put in a lower low but that does not have to happen at all. I expect a dip into the 2-3k region. Combine the indicators with the current halving FOMO and you have a perfect recipe for disaster. This crash could coincide with a breakdown from the rising wedge in the S&P 500.
Let's see what happens. See you in a future post.
Personally, I entered a short ladder in the mid 9ks and I am waiting patiently to see if bitcoin manages to invalidate this fractal that we have been following for years. Please note that I am not a permabear and I am waiting to accumulate heavily for the next bull market if this crash happens. You can be sure that people will be calling for 1k once we put in a lower low but that does not have to happen at all. I expect a dip into the 2-3k region. Combine the indicators with the current halving FOMO and you have a perfect recipe for disaster. This crash could coincide with a breakdown from the rising wedge in the S&P 500.
Let's see what happens. See you in a future post.