As continuously discussed over the last few weeks, both here and on the YT channel, we've long welcomed a fakeout down below the very key $30 000 support zone, but given that it would recover aggressively and at massive trading volumes.
We have now gotten EVERYTHING we've asked for and more in Bitcoin, and for those reasons there is a strong chance the bottom has in fact been set, and that new all-time highs are within reach.
What then are the things that further confirm this bullish reversal case?
1) As marked on the chart, we had a fakeout that turned into a bullish hammer on the 4-hour chart - and at significant trading volumes at that to let us know that the bulls are in full control and that they control the support zone.
2) The support zone held up. This is important as there is no support to speak of below until the previous all-time high at around $20 000.
3) The RSI is showing healthy patterns of recovery. This slow, gradual increase is a textbook sign of emerging strength.
These would all individually speak of strength. Now they come together as a force and I am convinced enough about this being a reversal to have moved all-in, not in Bitcoin, but in Marathon Digital Holdings, as it moves exponentially to that of Bitcoin.
Of course, there are still dangers lurking about. IF the price were to break below $30 000 again, then expect a brutal capitulation drop to take place. Luckily, there's a lot of built-up strength on the charts now to render that possibility unlikely. With that said, I will release EVERYTHING should Bitcoin break below again. One test below was the bullish fakeout to shake out the last weak hands that we asked for. A second revisit would change everything for the worse.
With that said, I am highly optimistic about this. And given that I bought in again at $33 000 equivalent, the stoploss is $3 000 below. But ... given that new all-time highs are fair to assume given the five month long wait in combination with the fact that we're technically still in a mark-up, $90 000 should be a conservative number before any significant correction of -20-30%. This means that the upside is $57 000 whereas the downside is $3 000. This gives us 19:1 in odds.
What this means is that as long as there's at least a 5% chance of this having been the bottom, then it's mathematically worth taking a long trade. And, I'd say it more than fair to assume that the chances of this being the bullish reversal we've been waiting for is far higher than 5%.
We have now gotten EVERYTHING we've asked for and more in Bitcoin, and for those reasons there is a strong chance the bottom has in fact been set, and that new all-time highs are within reach.
What then are the things that further confirm this bullish reversal case?
1) As marked on the chart, we had a fakeout that turned into a bullish hammer on the 4-hour chart - and at significant trading volumes at that to let us know that the bulls are in full control and that they control the support zone.
2) The support zone held up. This is important as there is no support to speak of below until the previous all-time high at around $20 000.
3) The RSI is showing healthy patterns of recovery. This slow, gradual increase is a textbook sign of emerging strength.
These would all individually speak of strength. Now they come together as a force and I am convinced enough about this being a reversal to have moved all-in, not in Bitcoin, but in Marathon Digital Holdings, as it moves exponentially to that of Bitcoin.
Of course, there are still dangers lurking about. IF the price were to break below $30 000 again, then expect a brutal capitulation drop to take place. Luckily, there's a lot of built-up strength on the charts now to render that possibility unlikely. With that said, I will release EVERYTHING should Bitcoin break below again. One test below was the bullish fakeout to shake out the last weak hands that we asked for. A second revisit would change everything for the worse.
With that said, I am highly optimistic about this. And given that I bought in again at $33 000 equivalent, the stoploss is $3 000 below. But ... given that new all-time highs are fair to assume given the five month long wait in combination with the fact that we're technically still in a mark-up, $90 000 should be a conservative number before any significant correction of -20-30%. This means that the upside is $57 000 whereas the downside is $3 000. This gives us 19:1 in odds.
What this means is that as long as there's at least a 5% chance of this having been the bottom, then it's mathematically worth taking a long trade. And, I'd say it more than fair to assume that the chances of this being the bullish reversal we've been waiting for is far higher than 5%.