Hi friends! Welcome to this update analysis on Bitcoin! As you can see on the chart, BTC is dropping like a rock from the bear flag consolidation pattern. Just for the record, when I was posting charts about the bear flags yesterday, I got the usual push back from the amateur analysts (at best) who think they know it all. They told me the bottom was in, these weren't bear flags, blah blah blah. Listen, when you're in university, do you teach the professor, or does the professor teach you? Moving on, you can see that the breakdown is clearly continuing. My downside target looks like a magnet that's drawing BTC directly toward it. With that said, it is not a 100% certainty that the target will be met. However, given the aggressive bearishness in this market, I think a test of the bottom of the downtrend channel (in pink) is highly likely.
If you recall from yesterday's post, I said "There is immense damage on this chart, and the majority of the resistance is to the upside. Don't let a little bounce, blind you into thinking the coast is clear." looking at the chart today, we can see that yesterday's bounce was a dead cat. Sell side momentum is increasing on the MACD, as it rolls over to form a bearish crossover, and red volume is picking up on the chart, signaling the return of the bears. You can see on the left side of the chart, just below the 786, there is a shelf of support that we are currently testing. Once that level breaks, BTC should fall into an area of very little support. Therefore, BTC could soon begin to accelerate to the downside, as it targets the bottom of the pink downtrend channel.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
"If bitcoin drops to 5000$, I willl sit down on the bottle". John Mcaffe
UnknownUnicorn1629946
⋅
@razor1911fck, He might will confirm suck his dick as btc might not reached 1M by 2020.
MagicPoopCannon
⋅
@yapckluke, lol I believe he said he would cut it off. =D
-Magic-
caimano
⋅
I think that the reversal is close for the following 5 reasons:
1) We have a very strong bottom in the 5,5 to 5,7K resistance (this is my entry level) a lot of price action in that area
2) the same area is a critical Fibonacci area based also on the similar 2014 correction
3) Tomorrow we will have the SEC hearing, this means that we will have the final FUD based dump to make the price to fall even faster to test the resistence
4) The Stock market start a quite good correction (-5% in one single day). I imagine that many people toke the profit in December from Crypto and used them in Stock and get back now to Crypto with a much lower price and, I assume, way more stability.
5) In the past 2-3 days I have noticed a little shift in a mainstream media content about BTC and Crypto in general. Looks like Crypto Currencies are more "on the ground" now respect the huge 2017 pump.
If price fall below this area (5,5 - 5,7K) I will start to really consider that this market will be bearish for a long period of time.
If it bounce we will have to scenario:
1) bounce with huge volume- Straight and fast to 17K area (could take less than 3-4 weeks)
2) bounce with low volume - Sideways around 10K area for a while and then pump to 17K area, but in this scenario it could take a couple of months ( this is my favorite scenario).
I just watching BTC at the moment, all other Crypto pump or dump accordingly.
@caimano, Isn't the Stock market correction caused by the increase in interest rate through bond yield? US dollars would benefit from the increase interest yield, and I believe it may have a negative impact on Crypto due to Crypto market cap has always shown an inverse relationship with the USD.
JonathanKim27
⋅
Hey mate, love this analysis, would love to learn more, do you run any channels/groups?
annoyingserf
⋅
Humble and extremely grateful for your TAs, the lengthy explanations, and most importantly the time you've sacrificed to share this information with many of us trying to wrap our heads around the markets.
XLukaz
⋅
Lighting Network is bigger and bigger and cheaper every day. 10x less transactions unconfirmed than on December. Bitcoin is better now but people are idiots from the street and they are selling!!!!
BTC must wait for investors who believe in this project. 12k to end of February. 17k to end of june, 20k to end of september and 50k to end of December.