BITCOIN: the pattern that nobody wants to talk about #Bitcoin
Without fail, every single major Bitcoin crash in history has flashed a bearish MACD crossover on the weekly and has fallen below the 21 weekly EMA. Literally every time this happens Bitcoin crashes. It was true when it went from above $1100 in 2014 to $150, when it went from $20K to $3K in 2018, when it went from $14K to $3800 in 2019, and we see the same signal now from $64K.
The obvious question is where will it find support. The most logical answer based on trend is the 50 weekly MA or slightly below, which would also support filling the gap on the CME futures between $24K and $27K. I'm not saying that it WILL do this, but trend is your friend until it isn't. And until this trend is broken and the market proves to you otherwise not recognizing it is being dogmatic for no reason. Nothing moves in a linear fashion. We will likely see multiple dead cat bounces if we are heading there. If the trend is broken and we magically go up from here, nothing would make me happier, so I'm not rooting for BTC's downfall at all.
Now if you're a long term holder, countless backtests and studies have shown that nothing beats dollar cost averaging. I have no doubt that Bitcoin will be worth more in years than it is today. If you are a trader, you most likely would've already exited your position at your short term profit target.
Only time will tell whether the trend ends here or not. We wait and see.
The obvious question is where will it find support. The most logical answer based on trend is the 50 weekly MA or slightly below, which would also support filling the gap on the CME futures between $24K and $27K. I'm not saying that it WILL do this, but trend is your friend until it isn't. And until this trend is broken and the market proves to you otherwise not recognizing it is being dogmatic for no reason. Nothing moves in a linear fashion. We will likely see multiple dead cat bounces if we are heading there. If the trend is broken and we magically go up from here, nothing would make me happier, so I'm not rooting for BTC's downfall at all.
Now if you're a long term holder, countless backtests and studies have shown that nothing beats dollar cost averaging. I have no doubt that Bitcoin will be worth more in years than it is today. If you are a trader, you most likely would've already exited your position at your short term profit target.
Only time will tell whether the trend ends here or not. We wait and see.