BITCOIN - THE CALM BEFORE THE STORM (TARGET 50K & BEYOND)
The Bitcoin show is never ending! Price is clearly showing signs of bullish activity and I had to put behind my strong bearish bias and change camps. I think this is the moment we have all been waiting for and it is time for Bitcoin to spread its wings and fly to new heights! Here is what I see:
What is on the chart? (follow the steps)
1. Prime Entry Conditions: The presence of a significant Fair Value Gap (FVG) on the daily chart, coinciding with a Break of Structure (BOS) level within a Fibonacci reload zone (spanning from 0.618 to 0.786), sets up an exceptional scenario for investors eyeing a long-term position. This confluence of technical indicators suggests a strong potential for reversal, making it an attractive entry point for those looking to capitalize on the ensuing swing.
2. Impact of Bitcoin ETF Hype: The market experienced a notable consolidation phase, primarily driven by the anticipation surrounding the approval of a Bitcoin spot ETF. This period was marked by extreme volatility, as traders and investors reacted to the unfolding developments, highlighting the sensitivity of the market to regulatory and institutional changes.
3. Sell-the-News Reaction: Following the hype, a classic 'sell the news' event occurred, where a weekly buyside liquidity line indicated a temporary top, leading to a reintegration into the previous range. While a larger correction was anticipated by many, including myself, the actual bottom formed in the subsequent step wasn't arbitrary but rather informed by underlying market mechanics.
4. Assessing Trend Strength: In retrospect, the weakening of the bearish trend was evident through the behaviour of open interest (OI). As prices fell, so did OI, indicating that the downward price action was more about traders exiting positions rather than initiating new shorts. This critical insight, missed at the moment, became apparent in hindsight, especially as prices stabilized within the Kumo cloud and rebounded from the daily FVG, signalling a potential bottom.
5. Bullish Accumulation and Resistance: The current phase shows signs of bullish accumulation, supported by the daily Kumo, yet faced with resistance at both the daily FVG and the Kijun line. This situation presents two likely paths: a retracement offering a more favourable entry point or a surge driven by significant ETF news, possibly from a major player like Blackrock, injecting substantial capital and sparking euphoria. Regardless of these speculative scenarios, it's crucial to stay grounded and open to various outcomes.
6. Anticipated Trend Continuation: Looking ahead, the expectation is for the trend to resume its upward trajectory, potentially setting new all-time highs. This outlook is based on the accumulation of factors previously discussed, each playing a role in shaping the market's direction.
As always, I hope you appreciate my insights and have a great day! - Lexi ;)
What is on the chart? (follow the steps)
1. Prime Entry Conditions: The presence of a significant Fair Value Gap (FVG) on the daily chart, coinciding with a Break of Structure (BOS) level within a Fibonacci reload zone (spanning from 0.618 to 0.786), sets up an exceptional scenario for investors eyeing a long-term position. This confluence of technical indicators suggests a strong potential for reversal, making it an attractive entry point for those looking to capitalize on the ensuing swing.
2. Impact of Bitcoin ETF Hype: The market experienced a notable consolidation phase, primarily driven by the anticipation surrounding the approval of a Bitcoin spot ETF. This period was marked by extreme volatility, as traders and investors reacted to the unfolding developments, highlighting the sensitivity of the market to regulatory and institutional changes.
3. Sell-the-News Reaction: Following the hype, a classic 'sell the news' event occurred, where a weekly buyside liquidity line indicated a temporary top, leading to a reintegration into the previous range. While a larger correction was anticipated by many, including myself, the actual bottom formed in the subsequent step wasn't arbitrary but rather informed by underlying market mechanics.
4. Assessing Trend Strength: In retrospect, the weakening of the bearish trend was evident through the behaviour of open interest (OI). As prices fell, so did OI, indicating that the downward price action was more about traders exiting positions rather than initiating new shorts. This critical insight, missed at the moment, became apparent in hindsight, especially as prices stabilized within the Kumo cloud and rebounded from the daily FVG, signalling a potential bottom.
5. Bullish Accumulation and Resistance: The current phase shows signs of bullish accumulation, supported by the daily Kumo, yet faced with resistance at both the daily FVG and the Kijun line. This situation presents two likely paths: a retracement offering a more favourable entry point or a surge driven by significant ETF news, possibly from a major player like Blackrock, injecting substantial capital and sparking euphoria. Regardless of these speculative scenarios, it's crucial to stay grounded and open to various outcomes.
6. Anticipated Trend Continuation: Looking ahead, the expectation is for the trend to resume its upward trajectory, potentially setting new all-time highs. This outlook is based on the accumulation of factors previously discussed, each playing a role in shaping the market's direction.
As always, I hope you appreciate my insights and have a great day! - Lexi ;)
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