There has been over a billion dollars worth of long positions liquidated over the past week. Leveraging long on the way down is a great way to burn your money and only helps the shorts. STOP DOING IT.
That said, I believe Bitcoin will bottom around 20k. An extended flat correction fits the chart almost perfectly. This possibility would set a bottom below the summer low of 30k. Coincidentally, the 200 weekly moving average is lining up exactly at 2017s ATH. (The 200 weekly is where support was found in previous cycles and is where the majority of my limit orders are).
Today, the price broke below the greater ascending wedge that has been forming since December of 2020. The chances of this being a fakeout are slim, given the macro environment. US indices have been getting crushed as all eyes rest on this month's FOMC meeting.
Longs desperately need mid 30k to hold, but the chances of the bottom being put in via a liquidation event are looking likely. We've seen this playout in 2017, in 2020, and there's a good chance it plays out now.
Maybe the Fed is hawkish and Bitcoin does bottom at 20k, maybe they walk back their decisions as to avoid a taper tantrum and the 5th and final wave that takes Bitcoin past 6 figures begins. Whichever way it plays out, be intelligent in your trades. Make your money work for you.
That said, I believe Bitcoin will bottom around 20k. An extended flat correction fits the chart almost perfectly. This possibility would set a bottom below the summer low of 30k. Coincidentally, the 200 weekly moving average is lining up exactly at 2017s ATH. (The 200 weekly is where support was found in previous cycles and is where the majority of my limit orders are).
Today, the price broke below the greater ascending wedge that has been forming since December of 2020. The chances of this being a fakeout are slim, given the macro environment. US indices have been getting crushed as all eyes rest on this month's FOMC meeting.
Longs desperately need mid 30k to hold, but the chances of the bottom being put in via a liquidation event are looking likely. We've seen this playout in 2017, in 2020, and there's a good chance it plays out now.
Maybe the Fed is hawkish and Bitcoin does bottom at 20k, maybe they walk back their decisions as to avoid a taper tantrum and the 5th and final wave that takes Bitcoin past 6 figures begins. Whichever way it plays out, be intelligent in your trades. Make your money work for you.