Over the past two weeks, we have continued to warn investors about the false rally, which seems to have started losing momentum. Yesterday, we warned that the correction in ETHUSD was nearing its end; then, a few hours later, ETHUSD fell approximately 10%. At the moment, we notice a similar pattern playing out in Bitcoin. Therefore, we would like to voice caution and awareness that Bitcoin is likely to follow suit in Ethereum's footsteps. We expect an eventual breakdown in the price of BTCUSD and new lows to be formed below 25 000 USD. As a result, our price target stays at 25 000 USD.
Illustration 1.01 The picture above shows the daily chart of BTCUSD and simple moving averages. We hinted at a similar retracement in ETHUSD yesterday before the price drop.
Illustration 1.02 Illustration 1.02 shows the mentioned retracement in ETHUSD. Retracements in BTC and ETH show a strong resemblance.
Illustration 1.03 The picture above shows the drop in ETHUSD.
Technical analysis - daily time frame RSI and Stochastic turned bearish. MACD is neutral. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.04 Volume drops like in the case of ETH.
Technical analysis - weekly time frame RSI, MACD, Stochastic, DM+, and DM- are all bearish. The ADX increases. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade active
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BTCUSD broke below the Support 1.
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Our thoughts were updated in the following post:
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After correctly predicting the bull trap, this is our latest idea on BTCUSD:
@TradingView, Thank you very much TradingView! I truly appreciate it.
AlanSantana
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It is likely that we go up soon in a relief rally...
Thanks for your work.
Namaste.
born2bwylde2005
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@AlanSantana in normal market situations yes but when economically and a major crash is looming the answer is no. Basically all the markets are grinding down price lvls slowly till nothing but capitulation is left in the cards major investors billionaires alike are bleeding the markets down slowly and the geopolitical climate right now has billionaires retaliating against government regulation and attacks. So they are gonna make the governments go broke
Tradersweekly
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@born2bwylde2005, Thanks for the contribution to the comment section.
Tradersweekly
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@AlanSantana, Thank you very much for the coins. Have a good one.
Profound_Ambition
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Based off higher timeframe I believe this is distribution preparing for a bullish breakout 🚀
Henrywaters
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@eazywayout I wanted to agree with you however the custom indicator for vix cheat sheet says we will probably go down 5 to 19% for 5 more weekly candles before a 45% rise within 10 weekly candles.