Many people are tricked into believing that fundamentals drive the price of Bitcoin and the cryptocurrency market. However this is inherently false. We can see that BTC clearly had made an ascending channel (a bearish continuation pattern) with corrective price action. There is a massive difference between impulsive and correct price action and knowing that is the first steps to understanding how to properly trade. Regardless at the top of this channel we had formed a massive compression in price, in the form of an ascending wedge, that resulted in an immediate impulse upon our break. After a few hours of sideways consolidation we then proceeded to impulse even further out of the ascending channel resulting in a wipe of over three weeks of price action. What does that show to us? That bears are in control. Numerous people blamed this on the Goldman Saachs, news which is inherently false as this was a clear short signal days prior to our drop and "news"
So what's next for Bitcoin????
As a bear since February of this year, I do believe that the market is coming close to forming a market bottom very soon. In order to accomplish this we will need to visit the bottom of the bullish structure of the descending wedge on our macro timeframe around 5.2k. There I believe a bounce is imminent for a reversal and a sideways consolidation to flatten out our rounding bottom. This is structure that any educated trader knows is a sign of market bottom. Look at many other market cycles to see this for your self. An 88.6% retrace is normal for a full market retrace. However, due to the institutional interest in Bitcoin and how new and exciting this market is for investors, I am not sure we will reach those levels. That being said, a break of the falling wedge would result in such an impulse and price would most likely see sub 4k levels.
Short term we are forming a redistribution pattern at the moment and another drop can be expected. We will approach our lower levels in due time as predicted over a week ago through my discord channel.
Best of luck to you all
So what's next for Bitcoin????
As a bear since February of this year, I do believe that the market is coming close to forming a market bottom very soon. In order to accomplish this we will need to visit the bottom of the bullish structure of the descending wedge on our macro timeframe around 5.2k. There I believe a bounce is imminent for a reversal and a sideways consolidation to flatten out our rounding bottom. This is structure that any educated trader knows is a sign of market bottom. Look at many other market cycles to see this for your self. An 88.6% retrace is normal for a full market retrace. However, due to the institutional interest in Bitcoin and how new and exciting this market is for investors, I am not sure we will reach those levels. That being said, a break of the falling wedge would result in such an impulse and price would most likely see sub 4k levels.
Short term we are forming a redistribution pattern at the moment and another drop can be expected. We will approach our lower levels in due time as predicted over a week ago through my discord channel.
Best of luck to you all
Comment:
Long Term Falling Wedge
Comment:
Redistribution complete. Impulse occurred.