Bitcoin >> Unpopular Idea that makes a lot of sense technically
Hi everyone,
Let me be clear. I would NOT like this to happen.
However, given where Bitcoin is in its market cycle as well as technical reasons after this very powerful rally from March 2020 lows, it does make a lot of sense to expect such price action unfolding over the coming 6-8 months.
I am not saying that it will certainly happen, but I believe it could play out. Here are the reasons:
1- very powerful parabolic rally, particularly in Q4 2020 - but really since the March corona virus crash
2- a LOT of confluence exists for support around the 13-14k levels (61.8 fib retracements, long term trendline, 21 EMA)
3- a breakout to $22k fib extension levels & long-term trendline would catch MANY traders like fish in a hook IF it proves to be a false breakout i.e. price sees a powerful rejection (blowoff top) from $22k levels and heads back below ATH ($20k) on the monthly & weekly charts.
4- getting Bitcoin's typical 35-40% corrections in a bull market and retest the 2019 Yearly high.
At any rate, let's see what happens. I just thought I'd present to you the risk of having an overall bearish 2021 wave, with the bullish excitement getting pushed EOY 2021 and 2022 (consistent with extending crypto market cycles).
Best luck in crypto land - trade safe!
Leb Crypto
Let me be clear. I would NOT like this to happen.
However, given where Bitcoin is in its market cycle as well as technical reasons after this very powerful rally from March 2020 lows, it does make a lot of sense to expect such price action unfolding over the coming 6-8 months.
I am not saying that it will certainly happen, but I believe it could play out. Here are the reasons:
1- very powerful parabolic rally, particularly in Q4 2020 - but really since the March corona virus crash
2- a LOT of confluence exists for support around the 13-14k levels (61.8 fib retracements, long term trendline, 21 EMA)
3- a breakout to $22k fib extension levels & long-term trendline would catch MANY traders like fish in a hook IF it proves to be a false breakout i.e. price sees a powerful rejection (blowoff top) from $22k levels and heads back below ATH ($20k) on the monthly & weekly charts.
4- getting Bitcoin's typical 35-40% corrections in a bull market and retest the 2019 Yearly high.
At any rate, let's see what happens. I just thought I'd present to you the risk of having an overall bearish 2021 wave, with the bullish excitement getting pushed EOY 2021 and 2022 (consistent with extending crypto market cycles).
Best luck in crypto land - trade safe!
Leb Crypto