Bitcoin - Secret trendline from 2013 is breaking down! (unreal)
Updated
- I never talk with empty words, and in this analysis I will give you the main reason why bitcoin could crash to 15k - 10k in the next few months.
- No one talks about this trendline from 2013, so it's a big deal. The trendline is already broken, and the bulls retested it a couple weeks ago. It's a classic retest. Usually, you want to wait for the retest and then short it.
- I want to tell you that this trendline is parabolic, and if it is reclaimed and followed, then theoretically, the price of Bitcoin will be around 5 000 000 dollars in 2030. This is unlikely.
- This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I post trade setups privately.
- What's more, the 200-week moving average has been broken for the first time (a negative sign).
- We still need to wait almost a year for this halving event. Meanwhile, we could experience a huge flash crash to liquidate high-leverage traders with a strong and steep rebound back to 32k. Bitcoin is very volatile, and a 50% or 80% crash is nothing.
- January 2024 could be the bottom for Bitcoin.
- Shorting Bitcoin is pretty good because it provides a very good risk-to-reward ratio compared to other altcoins on the weekly chart. It's because your profit on shorts practically cannot be more than 99.99% compared to your profit on longs, where your profit is unlimited. Your stop loss on BTC short could be, for example, 5% and on altcoins, 20%, with the same trade setup and same strategy, so it improves your risk-to-reward ratio on Bitcoin shorts.
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Note
We can zoom in on the daily chart to see how the trendline looks in the current price action:Note
The trendline is clearly broken, and that means that the trend was interrupted. We cannot continue to the upside with the same parabolic curve. If we hit a new all-time high, instead of 15x or 7x profit, we will make only 1x or 2x profit. Bitcoin is already too big for these parabolic gains, but still, if you catch the bottom and ride it to the top with good timing, you can do extremely well.
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