Technical Analysis: Above we have the BTC /USD 1D chart ( ) on the left and the BTC /USD 4h chart (Coinbase) on the right. Let's start with the chart on the left first. Even though it is hilarious, this is a real chart pattern. It was discovered by Katie Martin, she manages Vomiting Camel Capital Asset Management. Google "vomiting camel stock pattern", especially look at the the Gold chart from 2014 that illustrates this pattern. It is almost identical. The pattern speaks for itself of how the camel is drawn over the lifespan of the stock/coin. The end of this pattern is the actual vomit which show the 3 red arrows of the drop that may be impending. Each arrow is from price $5900, $5600, and $4750 from smallest to the largest arrow. As mentioned in our Youtube video yesterday, this is a pattern that is still in play. Let's take a finer look at the 4h chart for the TA behind it.
The 4h BTC chart shows a different picture. As you can see the larger pattern is still at play. We are still moving up and down toward the completion of the right shoulder. The $6550 marker which happens to be the 886 fib level is clearly a strong support and the bulls do not want to give up that line of defense. However, the bears are relentlessly knocking on the door. Sooner or later that door will break. Once this happens the $6000 marker from Feb 6th will be in play. As you can see that 50 (pink) is holding us down as resistance. Every time we go over it we get sent shooting back down. The last time we were above it successfully for a long period of time was December 2017. We gave our Cryptosomniac Advantage members a warning that this recent spike from $6500 to $7100 is nothing but a way to lure folks into a bull trap. It is just a temporary bounce and relief for the bears to catch their breath, let off the steam on those indicators and start hammering the price down again. The bears are in control.
Psychology: The bears, whales, institutional investors etc. are not letting their foot off the gas pedal. They want to wear out the holders of BTC and give into the market and sell. They want to wear out the bulls and push the price down to a price they feel comfortable buying. Where this may be exactly, I do not know. Once they break the $6000 level this will start to cause panic among a lot of investors. This may ultimately cause capitulation in the market and push the price to head toward the $5000 or $4000 levels. Just one of the scenarios that may play out.
Tip: Always practice proper risk management. Look for confirmation and set your stop losses. This is the best way to increase your risk:reward ratio. Cheers!