We failed to sustain any sort of support let alone to pull ourselves back into the Pattern which I have noted already. We failed the first retest and tumbled through that mountain getting smacked down at 36k by Whales and MM's which brought us to that 33k threshold. 33k was the next zone I said to watch for. Noted that if we broke 33k we would see thing go real bad which they have dragging us all the way down to 30k.
Technical:
In my last Idea you can see the pattern I've noted which we've been trending for a bit now, things would have been positive at least a bit had we broken up back into that pattern and that would have provided us at least a chance to regain our footing but instead we we're getting hit with too much selling pressure and as a result we saw our dramatic drop fall once traders realized we weren't really going back into that wedge. That was our safe zone or at least pattern to watch for Bitcoin's trend but being as it didn't stay within that and we lost our footing we essentially fell off the cliff. We also fell below that 35k position which I have marked in red and once traders realized we we're losing footing and getting rejected at that level I think things really kicked in. That spot was January's low so for sure when you see us lose our footing and fall below the lowest point of January, it incited a lot of selling pressure as well.
Liquidations:
One of the biggest reasons behind this dramatic/drastic drop is liquidations from future's positions. Over $796.96 Million has been liquidated in the past 24 hours with $657 Million being in the past 12 hours alone. Like I always say the liquidations cause a ripple/domino effect through the market and at that point it's not even sellers necessarily causing the selling pressure but all of these positions being liquidated. Think about it, even if your negative why would you sell lower than you bought? Most people more than likely do not have their averages anywhere near 30k so likely we are seeing the market getting hit with liquidation after liquidation. In the past hour alone $80 Million has been liquidated and depending on how deep this drop goes we could see these liquidations keep putting that pressure on Bitcoin though it's unlikely there will be much more positions to liquidate being as we are at a 10 month low and we could have seen most of those positions already having been liquidated. Now if we fall below 30k it'll be just much worse as we'll have actual future's positions get liquidated. I'm talking whales type positions and that would definitely hurt us more than what we've seen take place today but it's unlikely that those players would actually let crypto come down to that level and risk losing their assets such as Michael Saylor who said that if BTC goes to $21,000 MicroStrategy will be forced to sell some of it's crypto which would not be fun. And chances are they wouldn't be the only institutional to get that call. So basically if you thought today's drop was bad just imagine what the Margin calls for whales would look like below 30k.
Pullback?
It's tough to say what point we are in on the chart anymore. However I wouldn't be surprised to see a pullback or at least some retracement as Whales buy in at the discount, not to mention we are at such a low point now it wouldn't be hard for a golden cross to form and well you understand, we get that golden cross and enter the mountain as I always say and we're perfect. Now I could be wrong of course but Bitcoin's definitely got some buying pressure. In the past 5 minutes alone as I've written this Bitcoin dipped to 30,400 being it's lowest point with volume dramatically shifting now. We are seeing some pretty big green bars on the chart signifying someone is buying a lot, more or less likely a whale or a few that is but even being a whale it'll be hard to bring in that much capital to bring us back up, even if they did purposefully coordinate this drop. I won't rule it out though honestly, we've seen whales accumulate so much and perhaps sell a lot during this drop that likely they have enough monetary power to actually bring us back up. Not to mention in the past 5 minutes alone Bitcoin has dropped to 30,400 and pulled back up to 31,000 within 1 or 2 minutes so there definitely is some buying going on even at these levels. Whether or not that retail investors or whales I can't tell for certain right now but there's some pretty big volume and pressure going on now at least. So don't be surprised for a pullback, but also based on just how things are going, we're at a really weird position right now in regards to what can happen next I'll admit. Not everyday you see your market plunge.
S&P 500
As if not enough, the S&P 500 simply collapsed today with another heavy day in the read across the heat map, with us already looking at a 100+ point drop today which was relatively the same as Bitcoin. So Bitcoin as well has likely trended the way it has today thanks to that. We know that the two are correlated with Bitcoin leaning more towards the S&P 500 over the week and trying to pull away from that usually over the weekend but we saw no support in BTC over the weekend so it's not a big surprise but definitely wasn't ideal to see the market sink today. But also makes us wonder, could this finally be the reversal point? Or do we have a lot more red to deal with.
Thank you for taking the time to tune in and sorry if this isn't long but I just wanted to note a few things for you guys during this dramatic drop. Please follow and leave a like or share, it is always appreciated and always be sure to do your proper DD as well ofc and keep safe!
~ Rock
Technical:
In my last Idea you can see the pattern I've noted which we've been trending for a bit now, things would have been positive at least a bit had we broken up back into that pattern and that would have provided us at least a chance to regain our footing but instead we we're getting hit with too much selling pressure and as a result we saw our dramatic drop fall once traders realized we weren't really going back into that wedge. That was our safe zone or at least pattern to watch for Bitcoin's trend but being as it didn't stay within that and we lost our footing we essentially fell off the cliff. We also fell below that 35k position which I have marked in red and once traders realized we we're losing footing and getting rejected at that level I think things really kicked in. That spot was January's low so for sure when you see us lose our footing and fall below the lowest point of January, it incited a lot of selling pressure as well.
Liquidations:
One of the biggest reasons behind this dramatic/drastic drop is liquidations from future's positions. Over $796.96 Million has been liquidated in the past 24 hours with $657 Million being in the past 12 hours alone. Like I always say the liquidations cause a ripple/domino effect through the market and at that point it's not even sellers necessarily causing the selling pressure but all of these positions being liquidated. Think about it, even if your negative why would you sell lower than you bought? Most people more than likely do not have their averages anywhere near 30k so likely we are seeing the market getting hit with liquidation after liquidation. In the past hour alone $80 Million has been liquidated and depending on how deep this drop goes we could see these liquidations keep putting that pressure on Bitcoin though it's unlikely there will be much more positions to liquidate being as we are at a 10 month low and we could have seen most of those positions already having been liquidated. Now if we fall below 30k it'll be just much worse as we'll have actual future's positions get liquidated. I'm talking whales type positions and that would definitely hurt us more than what we've seen take place today but it's unlikely that those players would actually let crypto come down to that level and risk losing their assets such as Michael Saylor who said that if BTC goes to $21,000 MicroStrategy will be forced to sell some of it's crypto which would not be fun. And chances are they wouldn't be the only institutional to get that call. So basically if you thought today's drop was bad just imagine what the Margin calls for whales would look like below 30k.
Pullback?
It's tough to say what point we are in on the chart anymore. However I wouldn't be surprised to see a pullback or at least some retracement as Whales buy in at the discount, not to mention we are at such a low point now it wouldn't be hard for a golden cross to form and well you understand, we get that golden cross and enter the mountain as I always say and we're perfect. Now I could be wrong of course but Bitcoin's definitely got some buying pressure. In the past 5 minutes alone as I've written this Bitcoin dipped to 30,400 being it's lowest point with volume dramatically shifting now. We are seeing some pretty big green bars on the chart signifying someone is buying a lot, more or less likely a whale or a few that is but even being a whale it'll be hard to bring in that much capital to bring us back up, even if they did purposefully coordinate this drop. I won't rule it out though honestly, we've seen whales accumulate so much and perhaps sell a lot during this drop that likely they have enough monetary power to actually bring us back up. Not to mention in the past 5 minutes alone Bitcoin has dropped to 30,400 and pulled back up to 31,000 within 1 or 2 minutes so there definitely is some buying going on even at these levels. Whether or not that retail investors or whales I can't tell for certain right now but there's some pretty big volume and pressure going on now at least. So don't be surprised for a pullback, but also based on just how things are going, we're at a really weird position right now in regards to what can happen next I'll admit. Not everyday you see your market plunge.
S&P 500
As if not enough, the S&P 500 simply collapsed today with another heavy day in the read across the heat map, with us already looking at a 100+ point drop today which was relatively the same as Bitcoin. So Bitcoin as well has likely trended the way it has today thanks to that. We know that the two are correlated with Bitcoin leaning more towards the S&P 500 over the week and trying to pull away from that usually over the weekend but we saw no support in BTC over the weekend so it's not a big surprise but definitely wasn't ideal to see the market sink today. But also makes us wonder, could this finally be the reversal point? Or do we have a lot more red to deal with.
Thank you for taking the time to tune in and sorry if this isn't long but I just wanted to note a few things for you guys during this dramatic drop. Please follow and leave a like or share, it is always appreciated and always be sure to do your proper DD as well ofc and keep safe!
~ Rock
