As I have said many times, I always look to Both sides. Bullish and Bearish.
This way, I manage to always know what I am going to do should a Market Direction change.
I got caught out once before..NEVER AGAIN
So, While so many, including Me, look towards Further gains in 2025, there are some indications that A TOP has already been reached.
There is NO guarantee that another will come in.
The First Clue to a change towards BEARISH is in the main chart.
PA got rejected off the very same Trend line that rejected PA in 2017 and 2021, on all occasions, pushing PA into a Bearish Drop.
That alone should make you Think hard.
Next, we have the NUPL chart ( NET UNREALISED~ED PROFIT LOSS )
https://www.tradingview.com/x/ghTfdfVr/
The Arrow points towards the line, that once crossed has shown us that the high possible Profits available begin to Tempt traders to lock in profit..to SELL.
Once above this line, the next line has NEVER been crossed. ALL profit taking occurs in this Zone. You Will also notice how in 2021, when we had 2 tops, the NUPL reached High, Twice and then fell as traders Took the profits.
We have just had 2 tops and have just dropped out of the profit taking Range.
We may return, we may not. We have to wait but all the while, understanding the more profit taken now, people who buy at current price ranges will have to wait Longer to claim this same level of profit, assuming that the price Rises from here....Or they are in Loss...
The SOPR ( Spent Outpuit Profit Ratio ) , shows us that these profits have been taken
https://www.tradingview.com/x/6hPbO5HU/
The thing to see here is the level of Selling, or taking of profit. The SOPR line is down near Neutral,
This shows the Selling has Stopped. if we look back at the previous chart, we see that the level of profit is dropping. Less reason to sell....and while PA Drops as it is, there is even more possible LOSS incurred. The people who bought the Top are now getting worried.
Also notice the "labels" Top ( Bearish signals) and Bottom ( Bullish signals)
We had a Bearish warning around 6 weeks before current Top.
The Bullish signal on the bottom line Stopped about 4 weeks ago and you will notice how the "line" has dropped below the neutral line, indicating people accepting Losses, just to get out....
Again, this does not mean we will continue Lower but it is a Loud Warning Bell
Fot the Level pf profit to return, we need one of Two things, or Both, to happen
1) Price to Drop so we can Buy Low and wait for PA to rise again and so make profit
2) Buy now. ( Buy the Dip ) and Wait and Hope the Market goes to the prices some people say will happen ( Some are Stupid for this cycle BTW )
The MVRV chart helps us see where that Market is heading.
MVRV = Market Value to Realized Value. It is an indicator used to assess whether Bitcoin is overvalued or undervalued
https://www.tradingview.com/x/tFhvSbr7/
I am not going to get to techie here but that yellow line is called Z Score and we are in ATH territory when it is above the green MVRV, as can be seen in the chart
We are currently Dropping FAST and Z Score is very slightly BELOW the MVRV line.
This happened in Summer 2024 and we recovered as you can see.
This Means Bitcoin is becoming Less Overvalued but a Long way from Undervalued
What I see here more than anything is how the recent High was up on that line where the 2021 ATH was rejected from. It was the same level of Value that made people say, "OK, This is great, I am out" and Sell.
Again, understand, the higher the BTC price goes, the heavier it is to move. We may not manage to get a Bitcoin Way up where that 1st 2021 ATH was. Hugely over Valued.
THIS is what I am watching more than anything
So, are we in a Bear Market ?
NO - But it would be easy to fall into a Mini Bear here, or longer one, if the market does not recover by mid June Latest
Why ?
Because, as ever, for me, The weekly MACD is the -- THE thing to watch
https://www.tradingview.com/x/ArHf8x5V/
If that MACD drops below neutral when it arrives at Neutral, That is a Big red Flag....
But , in an ideal world, we should be able to understand the possibility of that happening BEFORE it does.
The charts above help with that - How mush profit is available, is it being Taken, what potential for more
March as a monthly candle, is very likely to close RED, as mentioned in other posts, It is APRIL that will really decide where we go next. It needs to be GREEN, even if only marginally.
My decision point is if the MVRV continues to Fall past that 236 fib line.....and stays below
Then the MACD and SOPR
If Capitulation begins - I BUY MORE - at the Bottom ( possibly around 65K - But I do not expect hat this year......
Bear Markets are not all bad....................
Have AI sold any Bitcoin Yet ?
NO - thankfully, I still hold enough profit on my earlier buys to cover the smaller losses I may make while I begin to buy again now, which I am doing, in small quanties...Just incase we move higher soon..Because, as I said before, I look to both sides....and I am more Bullish than Bearish right now.....But open to change.
I hope you all understand this logic
This way, I manage to always know what I am going to do should a Market Direction change.
I got caught out once before..NEVER AGAIN
So, While so many, including Me, look towards Further gains in 2025, there are some indications that A TOP has already been reached.
There is NO guarantee that another will come in.
The First Clue to a change towards BEARISH is in the main chart.
PA got rejected off the very same Trend line that rejected PA in 2017 and 2021, on all occasions, pushing PA into a Bearish Drop.
That alone should make you Think hard.
Next, we have the NUPL chart ( NET UNREALISED~ED PROFIT LOSS )
https://www.tradingview.com/x/ghTfdfVr/
The Arrow points towards the line, that once crossed has shown us that the high possible Profits available begin to Tempt traders to lock in profit..to SELL.
Once above this line, the next line has NEVER been crossed. ALL profit taking occurs in this Zone. You Will also notice how in 2021, when we had 2 tops, the NUPL reached High, Twice and then fell as traders Took the profits.
We have just had 2 tops and have just dropped out of the profit taking Range.
We may return, we may not. We have to wait but all the while, understanding the more profit taken now, people who buy at current price ranges will have to wait Longer to claim this same level of profit, assuming that the price Rises from here....Or they are in Loss...
The SOPR ( Spent Outpuit Profit Ratio ) , shows us that these profits have been taken
https://www.tradingview.com/x/6hPbO5HU/
The thing to see here is the level of Selling, or taking of profit. The SOPR line is down near Neutral,
This shows the Selling has Stopped. if we look back at the previous chart, we see that the level of profit is dropping. Less reason to sell....and while PA Drops as it is, there is even more possible LOSS incurred. The people who bought the Top are now getting worried.
Also notice the "labels" Top ( Bearish signals) and Bottom ( Bullish signals)
We had a Bearish warning around 6 weeks before current Top.
The Bullish signal on the bottom line Stopped about 4 weeks ago and you will notice how the "line" has dropped below the neutral line, indicating people accepting Losses, just to get out....
Again, this does not mean we will continue Lower but it is a Loud Warning Bell
Fot the Level pf profit to return, we need one of Two things, or Both, to happen
1) Price to Drop so we can Buy Low and wait for PA to rise again and so make profit
2) Buy now. ( Buy the Dip ) and Wait and Hope the Market goes to the prices some people say will happen ( Some are Stupid for this cycle BTW )
The MVRV chart helps us see where that Market is heading.
MVRV = Market Value to Realized Value. It is an indicator used to assess whether Bitcoin is overvalued or undervalued
https://www.tradingview.com/x/tFhvSbr7/
I am not going to get to techie here but that yellow line is called Z Score and we are in ATH territory when it is above the green MVRV, as can be seen in the chart
We are currently Dropping FAST and Z Score is very slightly BELOW the MVRV line.
This happened in Summer 2024 and we recovered as you can see.
This Means Bitcoin is becoming Less Overvalued but a Long way from Undervalued
What I see here more than anything is how the recent High was up on that line where the 2021 ATH was rejected from. It was the same level of Value that made people say, "OK, This is great, I am out" and Sell.
Again, understand, the higher the BTC price goes, the heavier it is to move. We may not manage to get a Bitcoin Way up where that 1st 2021 ATH was. Hugely over Valued.
THIS is what I am watching more than anything
So, are we in a Bear Market ?
NO - But it would be easy to fall into a Mini Bear here, or longer one, if the market does not recover by mid June Latest
Why ?
Because, as ever, for me, The weekly MACD is the -- THE thing to watch
https://www.tradingview.com/x/ArHf8x5V/
If that MACD drops below neutral when it arrives at Neutral, That is a Big red Flag....
But , in an ideal world, we should be able to understand the possibility of that happening BEFORE it does.
The charts above help with that - How mush profit is available, is it being Taken, what potential for more
March as a monthly candle, is very likely to close RED, as mentioned in other posts, It is APRIL that will really decide where we go next. It needs to be GREEN, even if only marginally.
My decision point is if the MVRV continues to Fall past that 236 fib line.....and stays below
Then the MACD and SOPR
If Capitulation begins - I BUY MORE - at the Bottom ( possibly around 65K - But I do not expect hat this year......
Bear Markets are not all bad....................
Have AI sold any Bitcoin Yet ?
NO - thankfully, I still hold enough profit on my earlier buys to cover the smaller losses I may make while I begin to buy again now, which I am doing, in small quanties...Just incase we move higher soon..Because, as I said before, I look to both sides....and I am more Bullish than Bearish right now.....But open to change.
I hope you all understand this logic
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.