After a pullback from 34 771$ the price bounced from 28 000$ level and SMA50. We could see a new upward movement in the structure of the main bullish trend. The crypto enthusiasts and holders are happy! The market is running to the Moon, ignoring physics laws and logic. But if we look at the market through our knowledge and gained experience, we will understand that the reversal is just the question of time.
There are no markets that can move in one direction all the time! It is great to have such dreams, but in order to make money in any market, you have to ignore your wishes and be realistic.
If we look at the 4H chart and how the price has been moving during the previous weeks, we will be able to say the following: - the price respects SMA50, and it is a good place for buying - the price moved far from SMA50, and it tells us about the overbought market - RSI reached the overbought zone, and it tells us about the overbought market - MACD lines moved far from the signal level, and it tells us about the overbought market - the price is not far from 40 000$ round number, which can become a solid resistance - if the market gives us a reversal candlestick or chart patterns at this level, it will be a solid bearish setup.
The market will correct the price. Probably it will be even a deep correction toward 20 000$. Why?
Because big players have to fix their profit. It makes not much sense to stay with a floating profit. The profit must be fixed, and it means that big players will start to close their long positions step by step. When and where will they do it? It can be done at 40 000$ or at 50 000$, at any round number. But it will be done. After that, we will see the correction movement toward the key support levels. If closing long positions is combined with short traders from bears and panic sell of from newbie traders, we will be able to see 20 000$.
The correction movement in the daily and weekly timeframes will allow smart traders to start buying again, and it will push the price upward.
Bitcoin, like any market, can be irrational, but it doesn't mean that we have to ignore the logic and principles of proper trading. It means that we have to be disciplined and not to buy at the top. We must plan our trades better, wait for solid bullish setups, and buy the asset at a good price.
And what do you think about the upcoming Bitcoin movements? Share your ideas in the comments below this post.
Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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Guys, I can see from the comments that there are so many experts in trading among you! You know how to trade and make tons of money in this market. My congratulations! If you think it is a good idea to buy Bitcoin at any price - you are welcome! Do everything you want and follow your plan!
I share my personal ideas with you, supported by 14 years of trading experience and knowledge. But of course, you are better than me! You know everything! Great!
I wanted to recommend you to watch a very nice movie, "Big Short", move back to 2017-2018, and read the market reviews for Bitcoin and other altcoins. But now I think why do I need to prove anything to you? I don't want to waste my time doing such useless things.
I wish you good luck in your trading!
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Do you think that such a long trade makes sense?
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It's amazing! Don't you think so?
They said: "Bitcoin will never move down" "No corrections!!!" "To the Moon!!!"
dream on! all you BTC bears who are expecting 40%+ pullbacks as in 2017 are delusional. IT'S SIMPLY NOT HAPPENING THIS TIME AROUND because the smart money is quickly buying these little 10%-20% dips. TOO much buying power for us to see a $20,000 btc again. Matter of fact I'll say this: BITCOIN IS NEVER HITTING $20,000 AGAIN, PERIOD!
We're currently targeting $50000-$70000 and possibly $150,000 just by this summer. Expect a cycle top at 200k-300k by end of year 2021 with then a cycle pullback to the $32,000 area for the next BOTTOM.
DLavrov
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@neofx11, you don't understand how things in the financial world work. That's why you can dream about... I wrote in the post. Thanks for your feedback!
neofx11
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@DLavrov, as a matter of fact I have a financial background here in Texas (an economics major) and have been trading and investing since 2008. You're ONLY looking at the technicals which is a big mistake this time around. 4x the amount of mined daily bitcoins are being bought up just by Paypal, GBTC and Square. Not even counting other institutions and retail buyers. I have NEVER seen such a supply shock imbalance in my life before.
Exponentially increasing demand vs. a limited amount of coins (around 3-5mm btcs actually is all that is available on exchanges right now as big buyers are buying and holding in private keys outside of exchanges). I estimate a $2.8-4Trillion dollar market cap by early next year in cryptos. With BTC dominance being steady that puts you at at least 150k btc but I expect a final blow off top at well over 200k
You won't believe how quickly this thing can absolutely erupt until you see it. I expect some $10,000 daily candles here in the near future matter of fact. So don't come to me with this amateur BS as I've proven many here very wrong before trust me. This was always a BUY & HOLD play and not some bullshit day trading strategy. this is a 2-3 year investment and all the smart money out there knows this.
I got in at GBTC right at $4.60 earlier in March. My fund is up well over 1400% on that alone and another 1200% on HIVE Blockchain. and that's just two holdings of 40+.
I guess we'll find out soon
DLavrov
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@neofx11, if so, why I had to explain the simple thing which you have to understand? TA and FA.. it doesn't matter as the price includes everything about the asset. The correction movement in the bullish main structure, it is 100% workable model.
neofx11
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@DLavrov, because fundamentals in this case will ALWAYS trump the technicals
Pro_Trader_HTBB
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@neofx11, not in a million years. Show me the charts and I'll tell you the news.
neofx11
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@HowToBuyBitcoindotnetdotau, you obviously don’t understand. I’m a technical trader first and foremost myself!
The technicals tell you the when and where to get in and eventually, where to get out.
But crazy, unprecedented volume will tell us in this case just how much higher we can go vs. our indicators.
It’ll be WAY more than our technicals are currently telling us I assure you.
2017 was a perfect example: the 4.23% Fibonacci extension from the 2015 low showed a target of $6000. Which from a low of $165 is unbelievable in and of itself.
HOWEVER the massive volume that came in took it 3x that to $20,000
That’s what I mean. My conservative target is 100k.....but it wouldn’t surprise me if we peak at around $200-250k
@neofx11, Fundamentally human psychology doesn't change, it hasn't changed since the inception of markets. Crypto just makes it more fluidly visible on the charts. As soon as I saw the "new paradigm, no more pullbacks" chud posts I knew it was time to start looking at shorts. This corrective move probably not over, we'll likely get that tasty 40% pullback to load up on. Posts like yours incide fomo in the inexperienced investor/trader. It's better to promote value entries. We could wick to 20K no problem. Why not bigger corrections than the last bull run? Everyone talks of less supply on exchanges, that just makes for bigger swings imo as people are playing with larger leverage. 3 Billion was liquidated in leveraged positions in only this drop. Of course we can go to 20K, you're blinded by bias to think otherwise. If we do I got my bids ready. 23-30K range is more likely. You should always have a plan of action for when you're WRONG. No matter what the trade.
We're currently targeting $50000-$70000 and possibly $150,000 just by this summer. Expect a cycle top at 200k-300k by end of year 2021 with then a cycle pullback to the $32,000 area for the next BOTTOM.