BTC technicals looking bearish!
For some investors this situation we all find ourselves in might seem very scary and many are very fearful and on the verge of selling their bag at a loss. The question you have to ask yourself every day is, "how long do I plan on holding my crypto assets?" and "what is the reason behind my decision to hold these assets?". This might sound simple but most people aren't aware of the phycological affects the market can have on the retail trader and therefore they fall into the category of traders who sell the dips and buy the pumps, because the hype clouds their long term judgement.
I am here once again to supply you with my technical perspective on the current market and supply you with my levels of confluence. I will start by stating the trend which is clearly bearish, but the details within it will be discussed below.
1) Bearish pennant: we are current in a bearish formation which has a target which lays at 21.3k, it wont be that easy to get to these levels in the short term as there are some strong levels of support that fall between the current price and the target, in my opinion it seems very likely based on the current media fud and technical indicators that we will reach these levels in the days/week to come.
2) Death cross: As stated in my last post about BTC, we are in a death cross, this may sound like an extremely frightening signals as it is bearish signal but in fact BTC has already experienced 8 of these crosses and all of them have resulted in different market movements whether it is a short retracement, large retracement, consolidation or even massive rally in the long term. If you are a long term investor I wouldn't be worried about this and would rather be excited as I am based on the fact that we are getting a bargain on all assets that we will potentially never see again in the future.
3) MACD cross: as displayed on the chart as a vertical red line, the MACD has diverged which is a bearish signal and should result in a retracement which influences the confluences expressed above. A good sign on the other hand is the RSI which is oversold at the moment and can only extend so far before other bullish confluences result in a shift in trends. But there is still some way to go for the RSI to the bears.
4) Golden pocket: we have recently broken out of the fib golden pocket which is a further bearish signal among all the above. the next levels of strong support lay at the
31K, 27.8k and finally the $23,8k mark, the 27,8k mark represents the 78% fib retracement level which is a very strong levels both technically and from a phycological standpoint.
ask yourself this, why is the price dropping so much regardless of the fact that the adoption of BTC and other assets are growing exponentially, where as countries are adopting these assets and the media is flocking, as well as both institutional and retail traders? doesn't that seem odd, that's because it is. It is clear manipulation where governance has finally come across the fact that crypto is not going away and they see a way to retain power amid the revolution into a financial system of decentralization. Therefore they are scaring the average joe retail trader out of the market in order to accumulate assets for their own personal gain in the long term.
Have the mindset of a institutional trader and you will go far in the field of crypto as well as traditional stocks.
Give me your ideas on this article whether you agree or disagree, either of these will benefit my understanding equally.
Thank you for your time.
I am here once again to supply you with my technical perspective on the current market and supply you with my levels of confluence. I will start by stating the trend which is clearly bearish, but the details within it will be discussed below.
1) Bearish pennant: we are current in a bearish formation which has a target which lays at 21.3k, it wont be that easy to get to these levels in the short term as there are some strong levels of support that fall between the current price and the target, in my opinion it seems very likely based on the current media fud and technical indicators that we will reach these levels in the days/week to come.
2) Death cross: As stated in my last post about BTC, we are in a death cross, this may sound like an extremely frightening signals as it is bearish signal but in fact BTC has already experienced 8 of these crosses and all of them have resulted in different market movements whether it is a short retracement, large retracement, consolidation or even massive rally in the long term. If you are a long term investor I wouldn't be worried about this and would rather be excited as I am based on the fact that we are getting a bargain on all assets that we will potentially never see again in the future.
3) MACD cross: as displayed on the chart as a vertical red line, the MACD has diverged which is a bearish signal and should result in a retracement which influences the confluences expressed above. A good sign on the other hand is the RSI which is oversold at the moment and can only extend so far before other bullish confluences result in a shift in trends. But there is still some way to go for the RSI to the bears.
4) Golden pocket: we have recently broken out of the fib golden pocket which is a further bearish signal among all the above. the next levels of strong support lay at the
31K, 27.8k and finally the $23,8k mark, the 27,8k mark represents the 78% fib retracement level which is a very strong levels both technically and from a phycological standpoint.ask yourself this, why is the price dropping so much regardless of the fact that the adoption of BTC and other assets are growing exponentially, where as countries are adopting these assets and the media is flocking, as well as both institutional and retail traders? doesn't that seem odd, that's because it is. It is clear manipulation where governance has finally come across the fact that crypto is not going away and they see a way to retain power amid the revolution into a financial system of decentralization. Therefore they are scaring the average joe retail trader out of the market in order to accumulate assets for their own personal gain in the long term.
Have the mindset of a institutional trader and you will go far in the field of crypto as well as traditional stocks.
Give me your ideas on this article whether you agree or disagree, either of these will benefit my understanding equally.
Thank you for your time.
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