This is less of a price action analysis and more of a dialogue on how we should proceed. Right now, btc's price action is rhyming very well with the 14k breakout. Our fundamentals suck, but other markets don't care and the vast majority of BTC indicators are bullish on long term charts. I think yesterday's 400 USD 30 candle on the 30 minute chart speaks volumes on how cautious we should remain. What seemed like safe ranges for entering longs and shorts were revealed not to be safe and I bet a lot of people were liquidated on that candle. Ichimoku clouds aren't perfect, but in a market like this, they can further highlight why we should be cautious. Right now, the clouds are telling me a lot on the daily chart. I see them saying that my steep green and red breakout lines are unrealistic, and that one or two things will happen. Not one of, but one OR two things. They tell me there's a great chance we will break the downward resistance for several days and that it could be a true repeat of the 14k run up. If you look at the weekly chart, though, it says that after this breakout, we're going south. The clouds are the clouds, though. What they could be saying is that we're going to trend into those daily clouds and then crash. We could trend under the clouds on the daily and out of a trending market, in which case the clouds don't have a lot of valid arguments to bring to the table until we re-enter a trending market. In any event, if you're reading this then you probably know how to read clouds and if you're new enough that you don't know how to read them, you should learn how. If you're new, pick an indicator or two a day and learn how they're used.
There's a potential longer term story here. I said other markets don't care about the fundamentals. They don't. Today. They will at some point in the future and so will Bitcoin. Is this what the clouds are telling us on the weekly chart? I think it's giving us an idea of when the fundamentals will begin to matter to financial markets.
I'll only make one call for certain in this post. We're in for heavy market manipulation over the next month.
There's a potential longer term story here. I said other markets don't care about the fundamentals. They don't. Today. They will at some point in the future and so will Bitcoin. Is this what the clouds are telling us on the weekly chart? I think it's giving us an idea of when the fundamentals will begin to matter to financial markets.
I'll only make one call for certain in this post. We're in for heavy market manipulation over the next month.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.