FOLKS, I have not written for a while! Why? Because this boring side-banding is a dangerous thing to be playing with, and I did not want to say anything that would give reason for one of my readers to bust a move and get REKT. So I decided to let the big mouths on YouTube take the lead on making crappy predictions on what Bitcoin is going to do.
However, I will say this...
We're on the edge of something big. Very big. I'm talking tremendous, in a bigly way. The season for side banding will soon be over. We're gonna get our money's worth one way or another when BTC breaks out of this extended period that has brought us very little entertainment. Let's look at the possibilities.
A pump is possible. This could be a major bull flag we are forming. Anything can happen, and NOBODY can say with absolute certainty that this thing won't shoot straight to the moon when it gets to the end of this boring formation. The one thing that will set this off like an atom bomb shows up on a very special chart that doesn't get talked about a lot. It's called the "Daily Line Break" chart. There is a very important downward-sloping trend line on this chart that Bitcoin has been bumping it's head on that hasn't been broken since 2019. When the price line breaks this trend line on the positive side, it's a very bullish indicator that is usually followed by a run. In history, we've seen several examples where BTC goes on a strong run when this line is broken. This indicator has proven true not only on Bitcoin, but stocks in general. If we break through this trend line in the coming weeks, this will validate the possibility of a bullish run. This is the only scenario that I can come up with that would bring forth the possibility of a break to the up side.
Let's set that aside for now, and look at the evidence to the contrary that would support the dump scenario. As we see on my chart, I have a blue trend line that is formed by connecting the dots of all the recent lower highs. If we combine this downward sloping line that served as resistance on the 4-hour candles (discluding the wicks) along with the repeated lower price returns on the stochastic peaks, we might experience a dump on the crossing of the Red Fib Circle rings that are quickly approaching. IF we get rejected on this line and don't break the trend line on the Daily Line Break chart, we've got to respect the possibility of a massive dump when we cross the 4.236 or the 4.618 Red fib circle rings. We are sitting at the 95% level on the stochastic right NOW, and this is the highest the stochastic has been driven up since May the 28th when it reached roughly 93%. As I've always said, returning lower highs at the absolute stochastic peaks is a definite indication that we are still in an overall downward trend. The length of time that has passed where the price line has been rejected on that trend line is significant. The longer we keep bumping up to that line and getting rejected raises the possibility of a major reversal.
Right now, we only have the magical Red Fib Circle set that is based on the time frame of May 25th to June the 20th to go by. We haven't had a swing channel change since the upward movement on the Red Fib Circle set, so this is all we have to go by before a new set can be constructed. And this current downward channel is not giving us any indication of being completed. As we know from previous pivot points on this set, these lines can definitely bring forth major movements. It's not a guarantee, but simply based on the fact that we have been stuck in this tight channel for such a long period of time, we know it can happen. The volume is low, and we are peaked out in the "overbought" zone. Combining these indicators with the uncertainty of the market, and the talk of another stock market plunge, the bearish dump scenario has a slight edge over the bullish Daily Line Break scenario. But for safety's sake, I'm going to call it a 50/50 chance either way.
What's the bottom line? Well, I would say it's best to be VERY CAREFUL and not put all of your eggs in one basket and DEFINITELY take everything with a grain of salt that you hear from the big mouths on YouTube who love stirring up hype and raising everyone's dreams of buying lambos late this summer or fall. This is only my uneducated opinion, so don't listen to me and lose your buns making an impulsive decision in an attempt to get rich quick. Keep it safe people, and don't risk your nest egg just yet.
I'll have a video for you soon on my own YouTube channel to show you the evidence on the Daily Line Break chart, and go into further detail of the bearish indicators that I see. Stay tuned, and have a great week!
Carlton Flowers
The Crypto Pro
However, I will say this...
We're on the edge of something big. Very big. I'm talking tremendous, in a bigly way. The season for side banding will soon be over. We're gonna get our money's worth one way or another when BTC breaks out of this extended period that has brought us very little entertainment. Let's look at the possibilities.
A pump is possible. This could be a major bull flag we are forming. Anything can happen, and NOBODY can say with absolute certainty that this thing won't shoot straight to the moon when it gets to the end of this boring formation. The one thing that will set this off like an atom bomb shows up on a very special chart that doesn't get talked about a lot. It's called the "Daily Line Break" chart. There is a very important downward-sloping trend line on this chart that Bitcoin has been bumping it's head on that hasn't been broken since 2019. When the price line breaks this trend line on the positive side, it's a very bullish indicator that is usually followed by a run. In history, we've seen several examples where BTC goes on a strong run when this line is broken. This indicator has proven true not only on Bitcoin, but stocks in general. If we break through this trend line in the coming weeks, this will validate the possibility of a bullish run. This is the only scenario that I can come up with that would bring forth the possibility of a break to the up side.
Let's set that aside for now, and look at the evidence to the contrary that would support the dump scenario. As we see on my chart, I have a blue trend line that is formed by connecting the dots of all the recent lower highs. If we combine this downward sloping line that served as resistance on the 4-hour candles (discluding the wicks) along with the repeated lower price returns on the stochastic peaks, we might experience a dump on the crossing of the Red Fib Circle rings that are quickly approaching. IF we get rejected on this line and don't break the trend line on the Daily Line Break chart, we've got to respect the possibility of a massive dump when we cross the 4.236 or the 4.618 Red fib circle rings. We are sitting at the 95% level on the stochastic right NOW, and this is the highest the stochastic has been driven up since May the 28th when it reached roughly 93%. As I've always said, returning lower highs at the absolute stochastic peaks is a definite indication that we are still in an overall downward trend. The length of time that has passed where the price line has been rejected on that trend line is significant. The longer we keep bumping up to that line and getting rejected raises the possibility of a major reversal.
Right now, we only have the magical Red Fib Circle set that is based on the time frame of May 25th to June the 20th to go by. We haven't had a swing channel change since the upward movement on the Red Fib Circle set, so this is all we have to go by before a new set can be constructed. And this current downward channel is not giving us any indication of being completed. As we know from previous pivot points on this set, these lines can definitely bring forth major movements. It's not a guarantee, but simply based on the fact that we have been stuck in this tight channel for such a long period of time, we know it can happen. The volume is low, and we are peaked out in the "overbought" zone. Combining these indicators with the uncertainty of the market, and the talk of another stock market plunge, the bearish dump scenario has a slight edge over the bullish Daily Line Break scenario. But for safety's sake, I'm going to call it a 50/50 chance either way.
What's the bottom line? Well, I would say it's best to be VERY CAREFUL and not put all of your eggs in one basket and DEFINITELY take everything with a grain of salt that you hear from the big mouths on YouTube who love stirring up hype and raising everyone's dreams of buying lambos late this summer or fall. This is only my uneducated opinion, so don't listen to me and lose your buns making an impulsive decision in an attempt to get rich quick. Keep it safe people, and don't risk your nest egg just yet.
I'll have a video for you soon on my own YouTube channel to show you the evidence on the Daily Line Break chart, and go into further detail of the bearish indicators that I see. Stay tuned, and have a great week!
Carlton Flowers
The Crypto Pro