BTCUSD
I am a long-term bull and I was short-term bullish since we broke 6k. But I strongly believe that Bitcoin will correct this or next week in a strong way. 1. The Fomo-crowd is already in. If we think of all the fundamentals and all the reasons people think that BTC will go up further without correction is straight delusional. After the break of 6000$, a lot of money went already into the markets, and I wouldn't claim that these people are 'smart money'. The push until 7000$ and the huge short squeeze at 8000$ was also the power of a lot of fomo. As a trader, you should always ask yourself, who is going to buy my asset at a higher price? People believe that prices will go up without correction because financial institutions are entering the market. If you think that all of the crypto traders are so clever that they can front run financial institutions at these levels, then you are not 'smart money'. The point I want to make is that for now there is no one left who buys at 10k or 12k. For now, everyone who can enter the market entered it already.
2. The technical indicators are hyper-bearish. The MultiRSI is extremely far extended and starts to reverse the slope. Usually, when this happens, a hard drop in the market is the result. The next point is that the price is underneath the resistance of the next red resistance channel of the SupertrenD indicator. This resistance channel was established in 2016 after we broke a six months consolidation period. The highest resistance in terms of a weekly close would be 9500$, but even this is highly unlikely, because:
3. Everyone knows that the price will go to 9500$. I have never seen so many people agreeing on a price target. This is usually bearish because if everyone agrees, then everyone bought already and no one buys your coins at 9500$. I would expect a drop right now or another run to around 9000$ and then fail. If we can make it to 9500$, then we probably going to shoot much higher.
Exciting times, guys. It is all probabilities, and I can be 100% wrong. But the experience taught me that situations where everyone 'knows' that they gonna make money are usually the biggest traps on the market.
I hope that was helpful.
Best,
Felix Kewa
