Well finally bitcoin broke down the 30k level, I have been pretty vocal about it in my last several posts, explaining the reasons why a drop is extremely probable due to lack of demand and interest in crypto market as a whole, you can clearly see the massive hype around crypto has vanished and the weather is pretty cold right now. As I have been saying in my last post, I was expecting bitcoin to initiate its drop around the crossing point of the , blue and red (red circle in the chart), and that’s exactly where that happened. I was talking about possibility for a reversal and what are the obstacles for bulls to overcome if we want to see one, but they failed at the first one and I said if they fail at any of those obstacles we will see a dump, just take a look at my previous post (screenshot below – click it to go to the original post) and judge yourself the accuracy and validity, I hope you find it valuable.
Right now price has broke-down from the downward purple channel and is now inside the yellow , sitting on the lower side, so it might initiate a move to the upper side (as demonstrated in the chart by arrows), or if bulls don’t show any presence then it might fall below the channel and dumps even more.
I also have been talking about the critical level of around 29 – 30k for bitcoin to break below in my past articles, if it wants to see lower 20’s, and as you can see in the screenshot of that post below (click to go to the original post), price has managed to hold on to it at current moment, but the problem is that we don’t see any meaningful reaction from bulls, we don’t see enough demand and buyers willing to step in at this area like the few times before. Previously whenever price reached this area it bounced quickly with significant demand and but right now its cold man. I should say that the trading is low and sellers are not doing much either, but their not much efforts have been enough to bring the price to this level, and that’s not a good news at all, cause if they have managed to bring the price here with not much efforts, how far can they dump the price if they put more efforts? So right now it doesn’t look any good for bulls and I want to be honest, I find it hard to find any signal from the chart in TA perspective, but whenever I see one I’ll be more than happy to share it with you guys.
I’d like to point something else here as well, and it’s the break-down of macro in of log chart (screenshot below). I’ve been talking about this possible break-down in my post several weeks ago, and now the break-down is confirmed, so lower prices for coming months should not be any surprise to anyone, but that might be good news as well, because that might be the time for bigger players like institutions to come in as many of them have been waiting I believe, because they mostly look at weekly and monthly charts and plan their moves on macro scale and you can’t possibly expect them to be he buyer at tops. It also is a good news for those who are here long term and actually believe in blockchain and crypto as they can buy them cheaper.
It’s worth mentioning that the fundamentals around bitcoin and sound alts have never been stronger than now, we are hearing great news and that can be an indication that the current bear market would not last very long like 2018 bear market, but that teaches me personally a great lesson and it’s that fundamentals don’t have to impact prices immediately, they are the main driving factor for rising prices in long-term of course, but the road is not a straight one, that’s where TA comes in play, when it’s cold it’s cold, you can’t warm up an entire market by several 4H candles, TA gives you the navigation tool so when the warmth slowly builds up and when it gets hot again, you would be the one enjoying the most.
My short position is still open at 32850 with SL at entry, shoutout to those who took that trade with me, I hope you’re enjoying that, and I have a plan to increase its size if bitcoin manages to break the 29 -30k down. I’ll be posting about that when I see a clear entry point.
In the end I’d like to ask you all to take a look at my previous posts and judge their qualities yourself, and if you find them and this post valuable enough then consider supporting me by hitting like and comment if you have any opinion about them, I’d appreciate that a lot.