BTC/USD - Elon Musk FUD! BTC in critical state...
Bitcoin has tanked 13% yesterday on the news that Elon Musk is discontinuing BTC payments for Tesla cars due to environment concerns... really? When they enabled this featured they did not know BTC is mined using electricity from... all sources?
Goes to show Elon did no due diligence. Or perhaps he just wants some cheap Bitcoin to accumulate?
Either way, price action is not looking that good for Bitcoin and one quick look at the BTC Dominance chart is all you need to do to realize we're not particularly bullish.
My bias for the short/medium term is somewhat bearish, however long term I remain bullish so long we don't fall under the 200 Moving Average (the line in blue).
Why am I bearish in the nearby future?
1. We broke BELOW the 50 (yellow line) and 100 (green line) Moving Averages on daily. So long we cannot recover or push above these levels, it's hard to be bullish.
2. Do I see right? A lower high and a lower low??? See yellow arrows, this is a bearish signal. This is quite a reversal from a bullish trend that has higher lows and higher highs... Another lower low or lower high and we will be in trouble as the trend may reverse, at least in the medium term.
3. Daily indicators are flat (no trend here), however, on weekly timeframe, the indicators and particularly MACD is picking up speed and expanding downwards... this is quite bearish and will require some serious buy pressure and pump to reverse it.
Any good news?
For now the
48K support level is holding, however we're forming a descending triangle (in blue) and if we re-test this support again and again we're likely to break down and fall towards 
41K or around the 200 Moving Average in blue. That better hold, otherwise...
Otherwise, we may get a 2013 scenario with a double top. This may be our first top at 60k followed by a sharp correction exceeding 40% and then another massive pump will take place taking us to >100k. But that is speculation. We just have to wait and see. I'd be surprised if the bull market ends here.
Alts and particularly ETH are still pumping hard, without much concern for BTC. Perhaps the alt party has to stop before BTC pumps again. Time will tell.
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Goes to show Elon did no due diligence. Or perhaps he just wants some cheap Bitcoin to accumulate?
Either way, price action is not looking that good for Bitcoin and one quick look at the BTC Dominance chart is all you need to do to realize we're not particularly bullish.
My bias for the short/medium term is somewhat bearish, however long term I remain bullish so long we don't fall under the 200 Moving Average (the line in blue).
Why am I bearish in the nearby future?
1. We broke BELOW the 50 (yellow line) and 100 (green line) Moving Averages on daily. So long we cannot recover or push above these levels, it's hard to be bullish.
2. Do I see right? A lower high and a lower low??? See yellow arrows, this is a bearish signal. This is quite a reversal from a bullish trend that has higher lows and higher highs... Another lower low or lower high and we will be in trouble as the trend may reverse, at least in the medium term.
3. Daily indicators are flat (no trend here), however, on weekly timeframe, the indicators and particularly MACD is picking up speed and expanding downwards... this is quite bearish and will require some serious buy pressure and pump to reverse it.
Any good news?
For now the
48K support level is holding, however we're forming a descending triangle (in blue) and if we re-test this support again and again we're likely to break down and fall towards 41K or around the 200 Moving Average in blue. That better hold, otherwise... Otherwise, we may get a 2013 scenario with a double top. This may be our first top at 60k followed by a sharp correction exceeding 40% and then another massive pump will take place taking us to >100k. But that is speculation. We just have to wait and see. I'd be surprised if the bull market ends here.
Alts and particularly ETH are still pumping hard, without much concern for BTC. Perhaps the alt party has to stop before BTC pumps again. Time will tell.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
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