I decided to use the BTCUSD daily chart because I think it starkly depicted the reversal in momentum between the bulls and the bears. For the past year, BTC has been on a torrent bull run from $3,750 to $65,000. You can see that we consistently made higher highs and lows in price action and the MACD remained above the zero line for the entire run. However, everything changed after hitting $65,000. Bitcoin broke the ascending channel it had been moving in since October 2020 and made a lower low for the first time in a long time. The MACD strongly broke support and the zero line thrusting all that bullish momentum back into bearish territory.
As a result, I am shifting gears on BTCUSD from bullish to bearish. That is not to say that BTC can't revisit $60,000 again. I am just adjusting my sights from higher highs and lows to lower highs and lows. I think the long overdue correction is upon us and I will be preparing for it as such. I am targeting $35,000 - $40,000 where there is strong support. It also coincides with where the price action could catch support with the bullish uptrend in pink.
All in all, I think this is the correction Bitcoin needs in preparation for its next move up. In the meantime, all those alts that have been suppressed by Bitcoin's massive run can finally have the weight taken off their shoulders and make runs of their own. I think Ethereum will be leading the way and other alts will follow. So while this correction might be bad for Bitcoin in the short-term, I think it's good news for the rest of the market.
As a result, I am shifting gears on BTCUSD from bullish to bearish. That is not to say that BTC can't revisit $60,000 again. I am just adjusting my sights from higher highs and lows to lower highs and lows. I think the long overdue correction is upon us and I will be preparing for it as such. I am targeting $35,000 - $40,000 where there is strong support. It also coincides with where the price action could catch support with the bullish uptrend in pink.
All in all, I think this is the correction Bitcoin needs in preparation for its next move up. In the meantime, all those alts that have been suppressed by Bitcoin's massive run can finally have the weight taken off their shoulders and make runs of their own. I think Ethereum will be leading the way and other alts will follow. So while this correction might be bad for Bitcoin in the short-term, I think it's good news for the rest of the market.