Hello Traders, here is an educational post about BTC.
I've heard a lot of people talking about the descending trendline connecting the pivot highs from the November highs. - There seems to be this idea that if BTC were to breakout of this descending trendline, this means that the bear cycle is over and BTC is going to the moon... However thats not necessarily true.
Of course nobody know what is really going to happen... however given the current economic climate and taking in past historical data from broader markets, there is a high probability that even if BTC breaks out it can still trend much lower before finally putting in a bottom and taking off.
This type of retrace after a breakout in a bear cycle is by no means uncommon. In fact there are tons of examples where stocks will travel much lower after breaking out where they finally retest the same trendline and take off.
- I would anticipate a decent size initial rally after the breakout, and this is where tons of novice traders will be fooled into taking longs thinking that the bottom is in.
- However smart money loves to drive prices lower when the sentiment is incredibly Bullish. This is what they do... they manipulate people into giving them their money.
Whether BTC breaks out or not, I'm anticipating BTC ultimately retracing back to $12K or potentially lower.
- As you can see, whether BTC breaks out or not, there is a path for it to hit $12K.
Be cautious and educate yourself as much as you can. It's markets like this that strips novice traders of their capital ultimately forcing them to quit...
- If you're prepared and aware, you can navigate these markets while protecting your capital.
Thanks everyone and best of luck trading!
I've heard a lot of people talking about the descending trendline connecting the pivot highs from the November highs. - There seems to be this idea that if BTC were to breakout of this descending trendline, this means that the bear cycle is over and BTC is going to the moon... However thats not necessarily true.
Of course nobody know what is really going to happen... however given the current economic climate and taking in past historical data from broader markets, there is a high probability that even if BTC breaks out it can still trend much lower before finally putting in a bottom and taking off.
This type of retrace after a breakout in a bear cycle is by no means uncommon. In fact there are tons of examples where stocks will travel much lower after breaking out where they finally retest the same trendline and take off.
- I would anticipate a decent size initial rally after the breakout, and this is where tons of novice traders will be fooled into taking longs thinking that the bottom is in.
- However smart money loves to drive prices lower when the sentiment is incredibly Bullish. This is what they do... they manipulate people into giving them their money.
Whether BTC breaks out or not, I'm anticipating BTC ultimately retracing back to $12K or potentially lower.
- As you can see, whether BTC breaks out or not, there is a path for it to hit $12K.
Be cautious and educate yourself as much as you can. It's markets like this that strips novice traders of their capital ultimately forcing them to quit...
- If you're prepared and aware, you can navigate these markets while protecting your capital.
Thanks everyone and best of luck trading!