A Short case for bitcoin
We started this last rally with the shorts getting squeezed out and having margin calls pushed on them leading to forced liquidations.
This is never good structure to build a lasting rally on plus vertical moves tend to get retraced. That coupled with a beautiful round top reversal pattern forming, the Macd just crossed down on the daily, plus the 10 and 20 ema is pretty extended from the 200. All of these technicals are pointing to a pullback. My hunch is there is a pile of sell stops forming under the red line. Once we get into the stops zone, I see a crash possible till we find liquidity then a rebound followed by another get me out while I can selling move downward into support.
We also just finished a nice Eliot wave upside impulse with a 100% extension in the wave 5 from a 61.8 retracement off the wave 3. Elliott wave rules say that this usually leads to another 61.8 retracement of the wave 5 and then a corrective pattern of some sort after. That also happens to put is smack in the middle of a support zone marked on the chart.
In my opinion, all signs are pointing down for bitcoin in the near term, but who knows it’s proven me wrong in the past.
This is never good structure to build a lasting rally on plus vertical moves tend to get retraced. That coupled with a beautiful round top reversal pattern forming, the Macd just crossed down on the daily, plus the 10 and 20 ema is pretty extended from the 200. All of these technicals are pointing to a pullback. My hunch is there is a pile of sell stops forming under the red line. Once we get into the stops zone, I see a crash possible till we find liquidity then a rebound followed by another get me out while I can selling move downward into support.
We also just finished a nice Eliot wave upside impulse with a 100% extension in the wave 5 from a 61.8 retracement off the wave 3. Elliott wave rules say that this usually leads to another 61.8 retracement of the wave 5 and then a corrective pattern of some sort after. That also happens to put is smack in the middle of a support zone marked on the chart.
In my opinion, all signs are pointing down for bitcoin in the near term, but who knows it’s proven me wrong in the past.
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