Let's quickly summarise some key points throughout this post:
- 6k support is now a 6k resistance
- The forever downtrend resistance is now a forever downtrend support.
- Whale manipulation
- Theory: Once it touches 6k for the first time in a long time, the price will most likely fail to continue, thus dumping back onto 4k support.
- Finally entering the consolidation phase, we're currently neutral with the 3 planes of existence (I'll show you what I mean)
A few things in this first screenshot. It's on the daily or 12 hour which is almost the same thing. It will take a few weeks for it to pop, if its actually a triangle. There's like 2-3 wicks that broke the form which might contradict this , maybe something to look out for. If it does pop, it could trigger a 6k retest, which all falls into the whale's plan, something I've been theorising for a while.
So if we look back a bit, we noticed that the price broke past the forever downtrend, that's already a huge sign that the market sentiment is turning. We've been slaves to this bear for long enough, and we've finally broken free from this oppression, all thanks to that massive 1k pump back in 2nd of April.
BTC's overall state is , no question about that, there's plenty indicators that point that direction. This may sound silly but just like any other market, its only until its not, I believe there needs to be a stronger pullback from the 1k pump back in 2nd of April before reaching higher highs which is still but just needs time to cool down.
If there's actually a dip coming, its only temporary before surging up to 6k, it stops at 6k because we know that it was once a strong support line that held for a whole year back in 2018, since we're retesting it, its now become an insanely strong resistance. Since the 6k support was so strong, its only make sense for our new resistance to be just as equally strong.
So here's the secret plan, the whales will be dumping at the 6k resistance, mainly because the resistance is insanely strong anyway, so it makes sense to dump at that point in time. I can't guarantee that, but there's plenty of evidence to suggest that happening. So we pumped from 4k to 5k, so what's the price doing now? Did it run out of fuel? Well, I don't have an answer for that. However, there's something I and many others are certain of, we can expect a pump to 6k within a few weeks, no exact timeframe but it is inevitable.
Here's the crazy part, when that does happen, the price will change market structure and fall back to a hard support in the 4k area. Just remember, when we see the next pump, the main stream media will start reporting this, and give false, misleading information as always, bait their viewers and fill their minds with junk. As a result, retail investors will see this and they'll repeat the same mistakes as always, and buy BTC very very late at 6k, and then get dumped on by whales, its very dirty I know, but this is how the game works.
Its all fun and games when the price is up, until the whales decide the make a move. Its important to realise that this was all planned and schemed by the whales, as always. History will always repeat itself in these markets, or any financial market for that matter. People don't learn, sadly. However, people like us who chart everyday and keep updated with accurate and authentic information do learn, thus the market rewards us for understanding the game, and punishes those who don't understand the game.
(Screenshot by D4rkEnergy)
"Lastly if we take a look at the Weekly Chart, you can see that the Momentum is getting bigger and bigger (even though the pace is not as great as before - but that is normal during a correction). Also the is holding above level 50." -D4rkEnergY
You see, the whales have been accumulating BTC since 3,300 USD which was back in Jan. They bought at 3.3k and will dump at 6k. That's a total profit of 90% (1.9x gain). They pretty much 2x their money without any guessing or gambling, they don't need to do any TA either. Whales have the power to plan and calculate these moves, which is why their always being blamed for market manipulation.
Whales are not stupid, I wish they were, but they're not. To avoid getting destroyed in these markets, it's up to us as traders and investors to figure out their game, and play along with their rules. We're simply passengers getting on and off the train, we can't control the train.
Once they dump, most people will lose their minds like always, yes its depressing to look at, but its not the end of the world. However, it does begs the question, once the market dumps from 6k, what can we expect now? This is where it gets fun, because I honestly believe we're at a very interesting stage in the market, now you've probably hear that line a million times a day but allow me to explain.
It's interesting because we're literally stuck between a rock and a hard place. The strongest resistance right now is the 6k one, and we have 3 levels of support. Support #1 is at 4925 USD, Support #2 is at 4K-4.4K, and lastly Support #3 is currently at 3k-3.2k. The last two are specifically is a supports. This means that the market can't bounce upward or drop downwards either, the market wants to stay sideways until the it feels like doing something.
My screenshot has defined 3 areas, or planes of existence as I call it. Heaven, earth, and hell. Heaven means we're 100% if we break the 6k resistance, I'd confirm a bull run 100%. Earth means we're neutral, we're stuck in the blue area, bouncing between (consolidation). And lastly, we have hell, the red area, which was a stage we just recently passed, we can literally say "We went through hell and back." Something definitely worth celebrating, because we earned it folks!
The price has found itself a stable place to stay, but for how long is another story, it can only rest and take a vacation to recharge itself for the next bull run, also known as the "consolidation phase." The consolidation phase is simply a stage in the market where it needs time to rebuild itself, it needs to time rest before changing cycles. In other words, its basically a bear hibernating, once the bear finishes hibernating it wakes up and starts wreaking havoc. So in market terms, when the bear wakes up is exactly when the market wakes up and decides to start a bull run.
The reason I say this is because the 6k resistance is too strong at this time to break through, and the forever downtrend has become an extremely strong support that it can't go back into hell again, this means we're stuck between a rock and a hard place, which leaves us with only one option, to consolidate. The market is trying to say "let me hibernate." Its been a long night, market is tired, and it just came back from a hard day's work, literally going from 1k to 20k and then from 20k back to 3.2k.
I hope this post sparked some ideas, and gave some value once again, let me know what you guys think in the comments, I reply to all of them! And don't forget to like and follow me on TradingView! I lots of spent time researching and discussing ideas with other traders to gain some insight and clarity, which lead me to write my own article with my own twists. Shout out to D4rkEnergY and his recent posts for inspiring me to write this.
Thanks again, and as always, have a fantastic weekend everyone!
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