CRYPTO WINTER IS COMING. WAKE ME UP WHEN NOVEMBER ENDS
Things aren't looking great for BTC currently.
The white dotted line acts as a bear market barrier and unfortunately as marked by the red squares price got rejected off of it last year in november and went below the wedge. Now, I know that all across 2018 BTC consolidated inside a descending triangle, however I opted to draw a wedge because the price went inside of it and broke out on the 17th of March 2019.
I expect it to do the same this year taking into account how bullish people are, still. We know that BTC tends to act the opposite of what the majority expects. Clearly we find ourselves inside a wedge once again and I'm honestly expecting the price to break it to the downside again.
Current long to short ratio is 4:1. Expecting some longs to get liquidated followed by a period of consolidation around 4500 before breaking out again.
The white dotted line acts as a bear market barrier and unfortunately as marked by the red squares price got rejected off of it last year in november and went below the wedge. Now, I know that all across 2018 BTC consolidated inside a descending triangle, however I opted to draw a wedge because the price went inside of it and broke out on the 17th of March 2019.
I expect it to do the same this year taking into account how bullish people are, still. We know that BTC tends to act the opposite of what the majority expects. Clearly we find ourselves inside a wedge once again and I'm honestly expecting the price to break it to the downside again.
Current long to short ratio is 4:1. Expecting some longs to get liquidated followed by a period of consolidation around 4500 before breaking out again.
Trade closed: target reached:
Newton's third law is: For every action, there is an equal and opposite reaction. The statement means that in every interaction, there is a pair of forces acting on the two interacting objects. The size of the forces on the first object equals the size of the force on the second object.
So the bearish scenario was still in play afterall.
Remember the 26th of October when it rallied from 7250 to 10500 in a matter of minutes? That seemed "out of character" for btc which was in a corrective trend at the time but due to China news it surged. Furthermore, the huge wick created a new threshold at 10500 (or gap) that needed to be filled. Notice how the price slowly made it's way up being drawn like a magnet to cover the "empty space" left after the pump attracting even more longs to get destroyed afterwards. Markets naturally do this to maintain the equilibrium between bulls and bears but BTC always does it to do as much damage as possible before re-stabilizing itself and unfortunately when someone wins big, that's linked to someone getting entirely liquidated. We already knew this, but in this market no one can really grasp the worst case scenario due to personal bias and in this case we had the halvening coming in May, the golden cross had happened on almost all major coins gaslighting retail money to ignore the already existing bearish signs with an well orchestrated bullish blanket everything almost perfetctly alining with the upcoming big event (halvening). So now that the most damage that could be done happened which I think was the true capitulation we can look forward to new highs.
So the bearish scenario was still in play afterall.
Remember the 26th of October when it rallied from 7250 to 10500 in a matter of minutes? That seemed "out of character" for btc which was in a corrective trend at the time but due to China news it surged. Furthermore, the huge wick created a new threshold at 10500 (or gap) that needed to be filled. Notice how the price slowly made it's way up being drawn like a magnet to cover the "empty space" left after the pump attracting even more longs to get destroyed afterwards. Markets naturally do this to maintain the equilibrium between bulls and bears but BTC always does it to do as much damage as possible before re-stabilizing itself and unfortunately when someone wins big, that's linked to someone getting entirely liquidated. We already knew this, but in this market no one can really grasp the worst case scenario due to personal bias and in this case we had the halvening coming in May, the golden cross had happened on almost all major coins gaslighting retail money to ignore the already existing bearish signs with an well orchestrated bullish blanket everything almost perfetctly alining with the upcoming big event (halvening). So now that the most damage that could be done happened which I think was the true capitulation we can look forward to new highs.