This idea wants to analyze a possible scenario. The left graph shows the situation in March 2020. Many people probably remember this period when bitcoin corrected by 50% in just one day.
We are not going to say that this will happen, but in fact the situations are very similar. Both then and now the situation from the technical analysis side looks very weak. Now the price is also moving in small rising candles and showing weakness on the buyers' side. In case of a break-down of the wedge, the price can go down, at least to the level of 29K.
Many Glassnode, Santiment and Whalemap fundamentals also speak about the weakness of the market.
If we analyze from the side of our trading system (green areas on the chart), you can see that the system showed an entry a few days ago, but today at the close of the daily candle there might be an exit. We use the trading leverage, with a high probability this trade will close with a small profit, but the point is that this is another negative signal for the rise of bitcoin.
At the bottom we have a marked fundamental value zone for bitcoin and altcoins. This would be the best place to buy. We wrote about this in more detail in last week's trading idea. Go over and find out where and why it's best to buy bitcoin and altcoins 👇👇👇
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Don't mean to be a dick but that was a Black swan event that you're referring to in March 2020 we're not dealing with the same thing. So you better try again.
AlexWhale
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@revivalcrypto, Read the description again to fully understand the analysis. We are not saying that this will happen, this is one possible scenario. It may not happen as quickly, but it is possible.
At the very least we can collect liquidity below the 30k level.
In any case, this is not financial advice. We only open and close positions based on signals from our trading systems.
Alex_Dehtiarov
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How can i get access to this indicator because as u show in last 2-3 ideas it seems like it work perfectly, isn`t it?
AlexWhale
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@leshqa, All the information is in the description
B_Musk
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What about Dec 4 - Dec 28? That could just as easily be a match to the 2020 pattern you reference. Consider that the drop we got is all we're getting, it was appropriate for the nature of the situation. If war is declared, suffocating regulation is realized or a new deadly variant of COVID takes shape, then sure we may have some serious pain. Otherwise not so sure. MAYBE we'll go to 20k-30k if there's too much skepticism in the market, but i'm no longer putting the odds in favor of such a scenario. Good luck!
AlexWhale
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@B_Musk, At these marks is the fundamental value of Bitcoin. The price will reach it sooner or later. It is important just to understand that this is the best place to buy.
As for the news, it's all bullshit and speculation, check what news was on Bloomberg and CNBC during 2018. When things are bad the big players accumulate there positions, keep that in mind).