What actually happened with Bitcoin?
Updated
Hello everyone, how are y’all?
Bitcoin has already Broken a major demand zone, what should happen now?
Let’s check the news first before going into the technical analysis.
There is a major fear in the market because of Russian Central Bank’s proposal to completely ban cryptocurrency trading and mining in the country. Russia is the 3rd major cryptocurrency mining country in the world.
The bearish trend on daily chart was started by the news of Indian govt regulating the trading of cryptocurrencies, and Russia is maintaining the legacy.
Fed Reserve’s stance on interest rates increment due to inflation has made people shift from cryptocurrencies to the less risky bond market.
Stock markets of different countries are bleeding too.
Technical Analysis (everything is mentioned in the chart tho)
November 10, 2021 was the day when Bitcoin touched 69k and it’s been making red candles since then. In December, it made a leg upside which was a bull trap. Check out my idea on this bull trap through the link at the end of the idea, below the comments.
Head and Shoulder Pattern:
Here, on the daily timeframe, Bitcoin made a head and shoulders pattern which perfectly played out with the bearish news after making a pullback (marked by arrow). We can target the 30k demand zone for now.
It is also following the trendline made in the chart. It has 3 touches. If you want detailed levels, do let me know in the comment box, I’ll share the chart with pitchfork levels.
There is one other thing which is bothering me. Bitcoin is making a Double Top Pattern on weekly timeframe. Double tops usually don’t work out on higher timeframes, but it might work out if the news stay bearish.
How to get out of your spot positions in altcoins, if this happens?
If this actually happens, first thing you have to do is clear your head off and think if you want that money in the near future. If yes, then Bitcoin might make a move to the upside till around 40k, if this situation happens. You should get rid of your positions at that time only, but after consulting your financial advisor.
Coming back to our idea, Bitcoin might return back to 37-38k level for a pullback. I will take these mentioned trades after some confirmations only. Will get the perfect entry on the lower timeframes.
I will be sharing the log chart soon, stay tuned for it.
Thank you, trade safe :)
Bitcoin has already Broken a major demand zone, what should happen now?
Let’s check the news first before going into the technical analysis.
There is a major fear in the market because of Russian Central Bank’s proposal to completely ban cryptocurrency trading and mining in the country. Russia is the 3rd major cryptocurrency mining country in the world.
The bearish trend on daily chart was started by the news of Indian govt regulating the trading of cryptocurrencies, and Russia is maintaining the legacy.
Fed Reserve’s stance on interest rates increment due to inflation has made people shift from cryptocurrencies to the less risky bond market.
Stock markets of different countries are bleeding too.
Technical Analysis (everything is mentioned in the chart tho)
November 10, 2021 was the day when Bitcoin touched 69k and it’s been making red candles since then. In December, it made a leg upside which was a bull trap. Check out my idea on this bull trap through the link at the end of the idea, below the comments.
Head and Shoulder Pattern:
Here, on the daily timeframe, Bitcoin made a head and shoulders pattern which perfectly played out with the bearish news after making a pullback (marked by arrow). We can target the 30k demand zone for now.
It is also following the trendline made in the chart. It has 3 touches. If you want detailed levels, do let me know in the comment box, I’ll share the chart with pitchfork levels.
There is one other thing which is bothering me. Bitcoin is making a Double Top Pattern on weekly timeframe. Double tops usually don’t work out on higher timeframes, but it might work out if the news stay bearish.
How to get out of your spot positions in altcoins, if this happens?
If this actually happens, first thing you have to do is clear your head off and think if you want that money in the near future. If yes, then Bitcoin might make a move to the upside till around 40k, if this situation happens. You should get rid of your positions at that time only, but after consulting your financial advisor.
Coming back to our idea, Bitcoin might return back to 37-38k level for a pullback. I will take these mentioned trades after some confirmations only. Will get the perfect entry on the lower timeframes.
I will be sharing the log chart soon, stay tuned for it.
Thank you, trade safe :)
Trade active
I'll trail my stop loss to the entry, as there is some positive news in the market. Blue zone is the point of interest for now.
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