Btc to 18-24k.Scenario 1 is btc makes a higher low above 29k and we go on forwards and onwards.
Scenario 2 which is run the lows and test for more liquidity downwards. Expect a slow car crash till 30k breaks and then a flash crash with a lower target of 18k.
Currents market enviroment is risk off, and things are going to get worse before they get better, expect a further liquidity crunch to ensue.
The reason crypto is falling isn't crypto related per se but a strong dollar index, coupled with the stock market imminent crash and further aggravated with the fed incoming anti-inflation policies.
Notably if we get the crash scenario eth will also more likely than not tap 1100-1400, ftm 60 cents.
Expect a bounce at 31600 but bounces are to be shorted at the .382 fib until we see a reversal pattern or 18-24k gets hit.
By the way if 36k breaks today without a bounce to ~37k that's extremely bearish, and given how NDAQ and SPY is on the verge of breakdown that's a 50/50%.
I wouldn't want to baghold the drop, you get in near the bottom and get a much better r/r, it's like holding through the 2020 health event crash instead of buying near 4-5k.
If you are in the market and haven't capitulated when 40600 broke, it's not too late to sell and rebuy but if youare leveraged or too afraid to take the loss you might as well buy more down there and hedge short current holding.
Crash!!!!!
CryptoMarket Update (#4) : Hidden Bullish Divergences ?Here's your weekly update ! Brought to you each weekend with years of track-record history..
Don't forget to hit the like/follow button if you feel like this post deserves it ;)
That's the best way to support me and help pushing this content to other users.
Kindly,
Phil
The ideal Bitcoin price scenarioHello, everyone!
The market is in extreme fear for a long time, even I started to feel this fear. The fear & greed index = 13. If re my previous articles, you remember that I think the bottom is next to current prices according to some indicators. Today I want to tell you how I see the ideal reverse scenario. On the 4h chart we have to see the new lower low which coincides with the true MACD bullish divergence. After that we will see the growth to $39-40k. Such move is going to lead to divergence on the daily timeframe which is much stronger trend reverse signal. But this is only assumption, we should see the confirmation of this scenario which I tell you when it will be the time.
Moreover, I conducted a survey, the most people think that the price will break down $30k first than break through the $40k.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
The Four way stop in front of the crypto market. BTC is driving.Most other established crypto charts reflect the same point of epic decision. Even the neutral path will be groundbreaking. As it will add a new component to the bitcoin pattern development. Outside of the March 2020 reactive crash this would be the most unusual path. For me, it would show the line between those who want to free and those who want to control the currency of the world. Beautiful moment. you can see the power and the calm.
Possible SPY Outcomes - Jan/Feb 2022To create these prices and their respective labels, the following indicators were used:
Volume Price Profile
Fibonacci Retracement
Consolidation Channels
Potential MACD lengths
Outcome #1 in RED, Outcome #2 in YELLOW
Overall, I have the sentiment that it will continue lower, at some point. There are an infinite number of factors that could affect when, and how fast it does fall (-10% next week, -30% over next two months etc.) This is just to help map my personal game plan.
#1: Bull Market Reversal Price: This is the price I have decided that I personally will use as an indicator that a correction is over, and there should not be any huge crash in the near future (excluding news, events). Approaching this point, I would chart something that is more bullish to prepare for that.
#2: Support Ranges: Of course as SPY dumps (if it does) it will not be a linear path. There will be locations in every price where there is some support met. The ranges marked are locations where the support may be its strongest, and likely good areas to exit short positions.
#3: Gap to Fill: There was a 7% increase in 2.5 weeks in this area, with 2% of this happening over the weekend. Other traders/ investors could expect this gap to be filled before any major consolidation or reversal. Just something to keep in mind.
#4: The red line is where most volume by price is since Nov. 2020. If it goes this low, I'd expect some good support in this area because of it, and the simple fact that it is 400 (a big psychological support.)
Some other possible outcomes are: consolidation from SPY Support #1 and Spy Resistance #1 for as long as needed, tech earnings are crazy good and the market goes full blown bullish, or very long term consolidation in a much larger range until their is confidence in the market again or it loses steam.
Crash this year or later?Eventually spy will collapse on to that long term growth line in white. For sure it will happen, not sure when, it could be by the end of this year or even next year.
We may have a bounce here and there, with high volatility. Fed meeting in March could accelerate or decelerate the eventual collapse.
Growth stocks have already collapsed more than 50% and may not recover, could see more drops. There could be immediate dead cat bounce in the coming days.
Be cautious moving forward.
The Monkey and the Wise OwlOne night, the monkey was monkeying as usual, jumping up and down, left and right, holding his fingers straight out of his head as if they were horns of a fearless bull. The Owl watched carefully, one eye skeptical, the other sarcastic.
"What do you think you are doing?" said the wise owl.
"I am hedging with BTC against a market crash," said the monkey, who didn't need an adjective to have his character described.
"You are doing what?!" said the wise owl with half a chuckle, while still holding to its skeptical/sarcastic look. "Look deeper into my eyes and you shall see."
"Shall see what?" asked the monkey monkey eagerly.
"You shall see experience, you fool," replied the wise owl, "If you hedge volatility with more risk, especially if the correlation coefficient is almost 1 more than 80% of the time, and, even more, when the coefficient was low, it was because BTC was falling while the market didn't, then you must be insane."
"The past doesn't necessarily predict the future," echoed the monkey with one of those packaged sentences that he knows by heart.
"I will give you that," said the wise owl. "But then, why do you expect BTC to go up?"
"Because it always did in the past," replied the monkey confidently. "And even the market rises eventually after any crash," it felt the urge to add.
"Indeed," replied the wise owl so calmly, that kind of calmness which signals the lack of interest in further conversation. They waved goodbye.
Back to its precious solitude, the owl switched to is smartphone, navigated to the investment app, and opened a massive short position on the monkey's future, while using BTC as a hedge.
Why Your Shorts Are Not Winning - Part 2The trend continues to be your friend until the very end.
This is 2 day chart that I posted in the beginning of the year that continues to be in play since the COVID meltdown in early 2020.
Price has been in a strong uptrend with very few pullbacks. Even the pullbacks result in dramatic reversals and pumps to the upside.
Here is where it gets interesting. We are approaching the top of the channel and the last time we touched the top of the channel, we had a strong pullback.
Is the market melting up, only to reach the top of the channel and turn back? Is price going to breakout of this huge channel? I think we're going to find the answers to these questions very soon.
Good luck. Never play the breakouts, wait for the retests. When it feels really right, it's probably wrong, and when it feels very wrong it's probably right.
The U.S Bubble Pop Of 2022 - And Japan? TLDR: The market is about to likely crash, in a much needed and healthy correction of capital placement in various industries and businesses. Why? Look no further than the Japanese Stock Crash of 1989, and see its similarities.
In 1988, Japan was on the verge of becoming one of the worlds greatest economic super powers. Its monetary policy had allowed for historically low interest rates and investors had created a housing bubble caused by liquidity. Japan's economy was a prosperous tank, and nothing seemed to be slowing it down any time soon (despite cries from numerous, increasingly impatient market gurus that the opposite was true.) Companies grew, exponentially, without the innovation or competition to match such growth. Inflation was at an all time high, and the housing market was completely inaccessible to young people (sound familiar?) In fact, the economy was so well, that Japans index, Nikkei, saw gains of ~ 30% year after year -- 5 years in a row (A total of 900% in the previous 15 years!) At this point in history, Japan was the leading manufacturer for new innovations in the tech world (Walkman, VHS, CD's, DVD's, INSTANT NOODLES, all from Japan). This boom in emerging new tech was clearly reflected in the markets. In fact, at its peak in 1989, Sony casted one of the largest acquisitions ever! The company paid $3.4 Billion for Colombia Pictures, despite have little earnings. This was move was out fear and speculation, as Sony wanted an edge on its competitors in the film tech world (Comparable to the historic Microsoft/ Activision acquisition perhaps?)
History shows that inflation is great for equities, until the government is cornered and has to take it seriously!
That is exactly what happened. This story was short lived, as it all came crashing down in 1989 and 1990. In 1989, Japan had elections and switched its form of power. A new political and economic policy entered, and when this new administration began tightening its policy to a more conservative standard (to fight ever rising inflation), the markets felt it. In just two short years, Japans speculative Nikkei market came crashing down 60% (it still hasn't fully recovered at 40% from its all time high, 30 years later.) Investment firms and corporations who used their capital to speculate in investments (which the public assumed would not lose their value) were forced to exit their equity exposure and risk at much lower prices.
Simply put, shareholders and venture capitalists had too much faith in these emerging markets and newer systems. Who could blame them? The past several years, the market was outperforming any investment in recent times. However, they were so comfortable and prideful, they had forgotten the risk of high rising equities and investments (this risk was compounded by greed, causing excessive and easy margin borrowing. We'll get more into this later, in another post.)
So, what is the lesson and how can we learn from this to prepare?
Just ask the Japanese. In 1998, Japanese technology was booming so much, it caused a surge of euphoria that investors did not want to miss out on. This euphoria compounds until it can no longer be maintained, confidence dwindles, and the market is hit. They've learned the lesson that in times of high deviation from the mean, it's important to exercise a healthy level of caution. This can be done by investing in real cash-flowing investments that have stood the test of time (commodities, land, gold, to name a few) and by sitting on a nice stash of cash (although, be careful, INFLATION!) This way, you can deploy your cash when the market is at a discount and become a gazillionaire. (I'll touch base on other ways you can make outstanding profit in a potentially bearish economy, in another post.)
As always, this is just a historical example. History never repeats itself, but it often rhymes like a rapper. The conditions we are in today are different in many ways, but by finding the similarities and drawing parallels, maybe we can prevent ourselves from being turkeys. (More on turkeys in a future post)
DJI (2H): That mini crash - what does next week hold?Well, there is trouble in the markets for sure. Last week saw a meltdown of about 8% from one peak, on the DJI.
My crystal ball broke a long time ago, and I'm not getting a new one from Ebay. 😂
The video outlines how vigilance on the 2H timeframe paid off for anyone who wanted to short this market.
So - what about next week (beginning Mon 24th Jan)? No predictions, all you get is probability and some of my experience. (Note the disclaimer below)
There is a massive gap between the 2H ATR line and the lowest price point. That in conjunction with the deep dive (much of it being panic), suggests that dip-buyers (unless they've wised up) are gonna plough in.
What those folk are largely unaware of is that Wall Street traders can not only sell but short sell.
What if price gets above the 2H ATR line next week or the following week? It doesn't mean a lot because there is the mother of 4H and 6H trends in the bigger picture. In fact there has already been a major shift in market sentiment on the 1D time frame. That's something to do with the FED, and interest rates etc. But in technical analysis causal factors are not so important.
A grind down further from the current price point is also possible.
My overall estimate is for rebellions. It could be very wild out there next week. That's good for scalping if you know what you're doing.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FTM Short after it's next rallyFTM is a fantastic project and I made a mistake not holding this short and entering long on TOMB Finance.
It will bounce as BTC will over the next week or 2 and most likely regain over the 2.1-2.2 area, here I will be exiting positions with whatever cash is left and entering short for the weeks afterwards. I will accumulate more FTM on the way down but it is never good to catch a falling knife. This chart looks to be a few weeks behind BTC's, which means it could fall 50% from here still.
BITCOIN (BTCUSDT) QUICK TA SCENARIO...Let the image speak for yourself...
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
If you enjoyed this post and agree with me, a like and a sub would be very nice : )
If you have any other ideas or simply disagree, manifest yourself in the comments ⬇️⬇️⬇️
Stay updated for more content
Have a nice Day : ) Bye!
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Bitcoin Crash Setup: Direct Crash or Bounce First?Bitcoin (BTCUSD) has now OFFICIALLY invalidated the bullish PURPLE setup that I covered which had us seeing a nested 1-2,i-ii setup in both BTC and ETH. This pullback is such a strong signal, that I have shifted to the RED bearish pattern as my PRIMARY! This pattern calls for a continuation of the pullback that started after our April 2021 top all the way down into the 20k range! GREEN is my bullish alternate pattern.
In Elliott Wave Theory, there is no stronger sign of a major impending trend reversal than seeing a 5-wave impulse break the price down through support. And that's exactly what we have seen in Bitcoin (and Ethereum)! We have a 5-wave impulse down that has broken below the major support at 39,600. While I expect a sharp 2nd wave bounce before the final drop, the GREEN pattern is NOT fully dead! If see a 5-wave impulse up and 3-wave pullback and the price exceeds our ATH, then the it is the RED pattern that is dead!
The RED alt pattern sees the entire rally from summer into November of 2021 as having been an ABC corrective B-wave rally, or a fake-out. That would make the next movement a ferocious C-wave crash down. As C-waves are always 5-wave patterns, we would look for an impulsive 5-wave movement downwards as the 1st subwave of this larger C-wave. And it appears that we more or less have that in place now in BTC and ETH!
From our Nov 10th top to right now, we can easily count a 5-wave impulsive drop that seems to fit appropriate Fibonacci targets. If this really is Wave-1 down of our larger C-wave down, expect a big Wave-2 bounce up to nearly 60k before the final drop begins. This would take the form of a 3-wave zigzag up and offer us a "gentleman's exit" to unload any holdings in preparation for the ensuing crash. However, there is a small chance that we don't get the bounce; if we break below the 32.7k - 35.9k region directly, I'm exiting my positions! That may be an indication that the 3rd wave down of the larger C-wave has already begun!
In summary, don't panic, but please do have your exit strategy prepared in case things turn bearish! Know when you will sell or IF you plan to sell. If you plan to 'hodl', then commit to it! There is a small chance that we have a 5-wave impulse take us right up through our 68k ATH, which would immediately kill the RED pattern, but until we see that, stay on your toes!
Check out my explainer videos on YT!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#bitcoin #cryptocurrency #blockchain #crypto
STOCK MARKET CRASH MARCH 2022 (LOG4J)This is the key chart to understand the market. Let's break it all down and what is likely to happen in Q1 2022.
First things first, it was not BTC which broke down first today, it was the stock market. The Dow ranged sideways for 9 months, not being able to break the high established in May. This has been highly reflected in the price action of Bitcoin, which was not able to maintain the bullish uptrend for more than one month at a time.
Despite all the injection of monetary supply since March 2020, the health and uptrend of the stock market has not been healthy. The economy has not worked at full capacity, and a smoke screen of monetary policies cannot hide the state of the economy and of assets prices.
Governments in Europe have just in the last four months increased the cost of energy by 800% in some countries, having a negative effect far and wide, not only to people and industries, but also for BTC, considering the cost of energy for mining. This also involved Kazakstan. The consequences of crypto downturn involve geopolitical events, that are now just starting to add up together and which might further affect the market in 2022.
If you look closely at the slope (angle) of the 200 MA on the Dow Chart, you can see that it's flat. What is happening is that it signals indecision, and it does not happen very often in stocks. Just in the last month we had three tests of support, indicating that the Dow will probably break down in the near future.
The compression of prices create large movements, this is an observed phenomenon in the market and also in physics. Stored energy will at some point be released, if a threshold is reached. That's what is now happening with stocks, and the difficulty to break the key resistance is indicating that the large movement will be down.
The large portion of the correction will, according to my estimates happen in March. This coincides with numerous economic and cybernetic events such as the FED largest taper of bond buying or the LOG4J problem, which will further put pressure on stocks.
The correction can range from the 0.618 FIB ($25,000 ) down to the 0 FIB ( $14,131 , down -63% from the TOP), which can take BTC all the way back down below 25k. If it happens, it will be similar to the dot.com crash with the internet companies, only this time it will happen with crypto.
Follow the trendlines!!!We broke our key trendline. The last time this happened we got the covid crash. Its better to stay out of the markets for now. We also broke the weekly bollinger band which could lead to further pain. I'll rather buy back a little bit higher with more safety. I am staying out for now. I wIll provide further updates later today.
Stay safe and know what you are getting into!
Will S&P 500 retest an important former breakout area this week?As you can see from the chart, there is a very obvious line of resistance that was broken two weeks ago during the Santa Claus rally. A line that held as resistance multiple times over the course of 1.5 months. The S&P is notorious for testing prior breakout and breakdown areas, especially when it is as important as this one and it was breached during a genuinely positive time in the market with lower volume.
I'm neither bullish or bearish on the S&P. What I do know is that the S&P is going to come back to that breakout point at some time. It's too important not to revisit because it caused multiple rejections and a lot of volatility off that resistance. That markets love to test these important areas.
Price can go higher and stay extended for some time. Eventually it should correct down to test the line.
Scenario A - Bullish: If price manages to get above the resistance and test the line and continue up, that's a buy.
Scenario B - Also Bullish: If price bounces off the important trend line, that's a buy.
Scenario C - Bearish: If the line does not hold as support, look for a rejection off the line, that's a sell.
Do not use real money to trade my idea. This is just fun for me to analyze and share my view of the market.
Good luck