Bitcoin / TetherUSShort
Volatility Incoming
Yesterday I talked about our target of $57,400 representing the daily resistance level, and indeed upon reaching our target it did not continue much higher before a substantial reversal began. We are now falling again as expected.
Today is much trickier. We have a bitcoin that has fallen back out of the rising wedge structure that has been fought so hard for over the past couple of weeks. The bulls are currently vying to maintain the $55,000 4-hour supply zone from yesterday.
Lots of things can happen next but here is what I imagine.
We continue to fall hard, all the way to a previous weekly support zone of $52,000.
From there we will get a massive bounce with much strength that will push us all the way back into the daily rising wedge - again.
We will then spend the next couple days pushing out the top of the wedge. We will reach all the way up to $62,000.
Then the bottom really and truly drops out.
Scenario 2 is that we bounce back into bottom of the daily wedge once more tonight before the fall, bounce higher then the bigger fall.
Scenario 3... well... Option 3 is that the rug pull has already officially began.
As you may know if you follow my work I am mid-term bearish on bitcoin and I think we are due for a major correction quite soon. However, due to the bi-polar nature of this asset and how hard the bulls have been fighting to maintain ground I am still expecting a major fake-out, most likely to both sides before we see where bitcoin really and truly is destined for mid-term which is a fast return to around $30,000. Watch for an opportunity to go long soon and scalp a strong play of upward momentum. But be reasonable with your targets and get out the moment things begin to reverse course.
On the flip side, this is a dangerous game we are playing now. It may be better to just sit out of the market and wait for a better opportunity to jump back in. And we will find that opportunity to go long and stay long, in a matter of weeks once the market has been properly flushed out.
Most retail money has been pouring in for weeks now and is prepared to hodl with promises and expectations that we are all going to the moon. As a contrarian I see this as a dangerous signal that we are soon going to do the opposite and revisit some very low levels. This is all just speculation but that is what I love about this market is that I get to speculate every day and hopefully if I am correct enough times and at the right moments I can make a killing this year and you can too.
Your thoughts really matter to me and I welcome your own comments and ideas that you may have about this.
Today is much trickier. We have a bitcoin that has fallen back out of the rising wedge structure that has been fought so hard for over the past couple of weeks. The bulls are currently vying to maintain the $55,000 4-hour supply zone from yesterday.
Lots of things can happen next but here is what I imagine.
We continue to fall hard, all the way to a previous weekly support zone of $52,000.
From there we will get a massive bounce with much strength that will push us all the way back into the daily rising wedge - again.
We will then spend the next couple days pushing out the top of the wedge. We will reach all the way up to $62,000.
Then the bottom really and truly drops out.
Scenario 2 is that we bounce back into bottom of the daily wedge once more tonight before the fall, bounce higher then the bigger fall.
Scenario 3... well... Option 3 is that the rug pull has already officially began.
As you may know if you follow my work I am mid-term bearish on bitcoin and I think we are due for a major correction quite soon. However, due to the bi-polar nature of this asset and how hard the bulls have been fighting to maintain ground I am still expecting a major fake-out, most likely to both sides before we see where bitcoin really and truly is destined for mid-term which is a fast return to around $30,000. Watch for an opportunity to go long soon and scalp a strong play of upward momentum. But be reasonable with your targets and get out the moment things begin to reverse course.
On the flip side, this is a dangerous game we are playing now. It may be better to just sit out of the market and wait for a better opportunity to jump back in. And we will find that opportunity to go long and stay long, in a matter of weeks once the market has been properly flushed out.
Most retail money has been pouring in for weeks now and is prepared to hodl with promises and expectations that we are all going to the moon. As a contrarian I see this as a dangerous signal that we are soon going to do the opposite and revisit some very low levels. This is all just speculation but that is what I love about this market is that I get to speculate every day and hopefully if I am correct enough times and at the right moments I can make a killing this year and you can too.
Your thoughts really matter to me and I welcome your own comments and ideas that you may have about this.
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