I've held a very bearish perspective since the correction in May and have been accurate for most of my short predictions. Here we are in a very similar situation where I previously would have called for a short over the coming month or so. This is my previous chart which has played out almost perfectly;
Here we can see the structure of both the peak in May and the recent peak here are very similar. I was actually able to correctly predict the ABC correction pattern because of how similar it is.
Now that we understand that I have the bigger picture in mind, this is why I think the opposite will happen this time around. Given the similarities of both structures, one would think we are in for more downside. But the opposite is actually likely, in my opinion, just based on the psychological perspective. What are the chances, the exact same thing happens again and it crashes all over again the same exact way? Basically none in my opinion. The opposite of what everyone is expecting always occurs.
Outside of this, there has been a repeating pattern towards each close of the month. Almost every close since May has had a big move to the upside to close higher than the previous. The recent China catalyst that dropped the price so rapidly just set up for the monthly close to be green as it has been doing. Not only this but if you compare the crash in May to Now, you will notice the separation from the 200MA on the Daily is very little. We are actually trading below it at the moment, which means if the price squeezes above it at 46k this will be very Bullish.
If you take all of this into consideration, I think BTC is set up to shock most traders. Here is another chart for a different perspective as well.
Thank you for taking time to check out the analysis, leave any questions or comments down below;
Here we can see the structure of both the peak in May and the recent peak here are very similar. I was actually able to correctly predict the ABC correction pattern because of how similar it is.
Now that we understand that I have the bigger picture in mind, this is why I think the opposite will happen this time around. Given the similarities of both structures, one would think we are in for more downside. But the opposite is actually likely, in my opinion, just based on the psychological perspective. What are the chances, the exact same thing happens again and it crashes all over again the same exact way? Basically none in my opinion. The opposite of what everyone is expecting always occurs.
Outside of this, there has been a repeating pattern towards each close of the month. Almost every close since May has had a big move to the upside to close higher than the previous. The recent China catalyst that dropped the price so rapidly just set up for the monthly close to be green as it has been doing. Not only this but if you compare the crash in May to Now, you will notice the separation from the 200MA on the Daily is very little. We are actually trading below it at the moment, which means if the price squeezes above it at 46k this will be very Bullish.
If you take all of this into consideration, I think BTC is set up to shock most traders. Here is another chart for a different perspective as well.
Thank you for taking time to check out the analysis, leave any questions or comments down below;
Comment:
Updated analysis to further develop this one!
