[Disclaimer: I am not a financial advisor, this is not financial advice, do your own research. I am personally just starting to learn technical indicators and these posts should not be taken more than the musings of a newbie]
Another day, another recap on Bitcoin. In my opinion, it's not looking great.
Let's go over the chart.
As I stated in yesterday's post, it seems like the downtrend from the Head & Shoulders/Right Angle Broadening pattern is holding its downward trajectory. After spending the better half of the morning testing the support, it seems like the price has broken past that support at $46585, though I would wait a bit longer to see how it reacts in the hour and throughout the day.
Not quite. There are a couple of possibilities left for BTC.
1. There is significant buying volume coming in at a lower low - producing a double bottom pattern that entices traders or investors to long BTC again.
- This could happen at several points. I'm looking at ~$44000 or possibly even as low as ~$38000 to see if buying volume picks up enough to push back against the bears.
2. Good news hits BTC producing another upswing.
- Unlikely. Even our good friend Elon Musk has been thinking that the price of BTC and ETH seem quite high, which may have actually aided in the initial selloff. Unless we see a significant move, I doubt that any news will bring in a good enough volume of buyers.
3. A potential upswing...but it's a dead cat bounce.
- This seems possible. We saw a swing up a bit earlier in the day as the old support was tested, and BTC may see a small rally before continuing its downward trajectory.
What I'm Doing
I have completely sold my BTC at $45750. Mind you, I'm was not a whale by any means (0.002119 BTC), and I've been holding that amount since 2018.
Looking at the movement, I am currently bearish on BTC. This crypto boom has been quite profitable for many and I expect that like early 2018, the bull run is coming to an end. With more and more retail investors entering the market and everyone talking about crypto again, it seems like only a matter of time before we see another period of BTC at a lower price.