Bitcoin BTC puppet masters fool us again...or not?
Bitcoin is in a very unique place as it's dominance chart is correlating heavily with gold which also affects BTC's price in the same direction. The S&P 500 surprised institutions after breaking new highs and continuing the 12-year bull cycle, it seems as if liquidity is flowing slowly away from the storage-of-value hedges like Gold and Bitcoin back into traditional markets for the time being.
Bitcoin puppet masters (whales) recently managed to give BTC room for its death cross-reaction by pushing prices up over 40% in less than 48 hours, but we still have not seen the effects of the death cross (50D MA crossing below the 200D MA). After trading markets for almost 10 years, it would be an extremely rare occurrence for a continued uptrend after such a major bearish indicator. This is only the start of the bearish parts of BTC.
When looking at the Bitcoin dominance chart (which pretty much correlates with BTC price), it has been following Gold's market structure and we predicted many bitcoin movements based on this correlation. Well, less than 24 hours ago gold hit another low of 1460 which marks a double-bottom for Gold. If BTC were to follow this pattern then we would be shooting for another 7400 target in this breakdown.
When looking at market structure this is a perfect support for BTC to complete the bullish flag it's in which also gives room for traditional markets to exhaust themselves and liquidity to flow back into BTC and Gold. Yes, I said bull flag because I still believe we are overall bullish on BTC and Gold but in the medium term, it looks although the recent push up was a good way to clear shorts before seeing another drop and some proper consolidation.
Some confirmations include the 1D RSI finding resistance at 60 and now below that level which is a bearish indicator for the medium-term perspective. All in all, we have the 100D MA at the other end of the flag so the only bullish case would be a break above 9700 (preferably with volume and into 10K) for us to assume any bullish signs with BTC. This will allow market structure and the 100D MA to act as support however the likelihood of this with what we discussed is low in my opinion.
I post daily market updates in our free discord and we have over a dozen 7-figure-traders on our team posting bitmex, crypto, forex, and stock signals for our premium members. I hope to see some of you there and make sure to like this post if you agree or comment if you don't.
Naeem Al-Obaidi
Traders Profit Club Head Trader
BTCUSD
Bitcoin puppet masters (whales) recently managed to give BTC room for its death cross-reaction by pushing prices up over 40% in less than 48 hours, but we still have not seen the effects of the death cross (50D MA crossing below the 200D MA). After trading markets for almost 10 years, it would be an extremely rare occurrence for a continued uptrend after such a major bearish indicator. This is only the start of the bearish parts of BTC.
When looking at the Bitcoin dominance chart (which pretty much correlates with BTC price), it has been following Gold's market structure and we predicted many bitcoin movements based on this correlation. Well, less than 24 hours ago gold hit another low of 1460 which marks a double-bottom for Gold. If BTC were to follow this pattern then we would be shooting for another 7400 target in this breakdown.
When looking at market structure this is a perfect support for BTC to complete the bullish flag it's in which also gives room for traditional markets to exhaust themselves and liquidity to flow back into BTC and Gold. Yes, I said bull flag because I still believe we are overall bullish on BTC and Gold but in the medium term, it looks although the recent push up was a good way to clear shorts before seeing another drop and some proper consolidation.
Some confirmations include the 1D RSI finding resistance at 60 and now below that level which is a bearish indicator for the medium-term perspective. All in all, we have the 100D MA at the other end of the flag so the only bullish case would be a break above 9700 (preferably with volume and into 10K) for us to assume any bullish signs with BTC. This will allow market structure and the 100D MA to act as support however the likelihood of this with what we discussed is low in my opinion.
I post daily market updates in our free discord and we have over a dozen 7-figure-traders on our team posting bitmex, crypto, forex, and stock signals for our premium members. I hope to see some of you there and make sure to like this post if you agree or comment if you don't.
Naeem Al-Obaidi
Traders Profit Club Head Trader
BTCUSD
Trade active:
We are currently finding support along the 50D MA however there is still some downside to go and a possible break towards 8900 before a push down is likely. The next target based on volume would be around 7,977 which should be a solid place for a long entry based on the amount of volume here. We are in a no volume zone so being a continuation down is expected.
When looking at gold the 100D MA could not hold and broke so I would not be surprised for BTC 50DMA to break soon, especially after the death cross.
When looking at gold the 100D MA could not hold and broke so I would not be surprised for BTC 50DMA to break soon, especially after the death cross.
Comment:
Bitcoin is following the exact pattern we predicted and we are now awaiting a buy opportunity. If you look at the above graph the current price is nearing our target. I do not believe we will go far below this level before seeing a bounce due to market structure.
We will be awaiting confirmation of the bottom, as it is best to wait during a momentous downward move like this. Our analysts and I are closely watching the market cap, dominance, and correlating assets to ensure the best position. We caught a great short entry by using this principle of patience and we will ensure to keep that quality over quantity as the bears get shaken out.
We will be awaiting confirmation of the bottom, as it is best to wait during a momentous downward move like this. Our analysts and I are closely watching the market cap, dominance, and correlating assets to ensure the best position. We caught a great short entry by using this principle of patience and we will ensure to keep that quality over quantity as the bears get shaken out.
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7950 does have a lot of volume however the flag pattern and previous bottom of 7240 makes it very risky to try and long that level, especially with this dragging downtrend that has not yet impulsed with sell volume.
Our analysts and I are watching BTC closely along with Gold and we will be posting the best / safest positions. Remember it's never a good idea to catch a falling knife and we are always focused on quality over quantity.