As you know, I have been bullish
short term for quite a while, and things start to turn in the right way. BTC
just retested once again the bottom of the 2 month-long descending channel
( bullish pattern
). This is characteristic of a normal retracement after a significant extension (60k). As you can appreciate, when we had the massive breakout to the downside, the volume
was ultra-high, then it started to taper off, which suggest that there was a climax of selling from the smart money to grab BTC
at cheap prices, as the volume
and momentum taper off it is expected that accumulation is happening, this is characterised from the high volume
at the different lows (29k region) where the smart money was scooping up cheap BTC
has started to increase in lower timeframes in the last few days as BTC
gains strength for the next volatile move upwards. Not informed traders will confuse the lack of volume
from high frames as a lack of institutional interest. However, this is rather wrong as the institutions have already bought at lower prices and are waiting to trigger a short squeeze at strong resistances such as the 36k
and 40k, that is where you will see significant volumes coming in, many traders will get liquidated and the prize will become highly volatile upside triggering FOMO from the same who have been squeezed out. Now BTC
has just broken the first resistance (channel). Also, an head n shoulder have been formed and broken in the hourly timeframe and we reclaimed the 50MA on the weekly. BTC
is gonna touch 36 k in the next few days, It will be rejected at first and will fall back to 33 k after this small retracement it will then shoot up 43k here the resistance will hold to just break later on and BTC
will finally push to 58 k once again. Here everything will need to be reevaluated. If the momentum is strong we will break through and create the 5th macro wave with target 186k (you can write it down), however there is also a possibility we will be rejected violently and drop down to 22k, However I personally believe the drop to 22k in the less likely scenario...why?...because we just experienced an extended 3rd wave and this usaully retrace to the 0.236 level which was at 33K this means we are ripe for the final leg up. If you were following my post you may have built a good position between 29k and 33 k which i labelled as the bottom and now you have ahead a 6x (600%) profit. Note that there is still the possibility to collapse to 22k, in case that happens as investor i will hold my current position and to go all in at that level as it will be a life-changing opportunity.
Just remember that things can change fairly quickly in the market so a trader should always be reactive and respond to market conditions to preserve capital. Always do your own research.
If any question, please do not hesitate to contact me. Share if you like the content and follow for new updates weekly.
Just remember that my contents are nevere financial advices, but just educational.