Bitcoin – A Quick Technical Read
So the last time, I tried to seriously interpret BTC action in a public setting was 2017. Right before BTC decided to offer speculators a nifty little 10x return in less than a year. And I was not on the right side of that 10x.
Like many, I’ve significantly increased my education in the blockchain. I see and agree with the future of the potential. Not necessarily in agreement with the anarcho techno-extremists, but clearly an enormous amount of innovation in the space is going to go mainstream in the coming years. It’s like Pandora’s Box. Can’t be closed again.
Because of it’s ability to attract those looking for an easy score coupled with everyone being a “Market Wizard” thanks to the internet (including A-holes like me), some action appears to be setting up in BTC. Observe.
Or maybe it’s a “vomiting camel.” Look at the most current weekly candle on the right of the chart. See how it’s breaking down through the shoulder-line. I suspect that cheap bit of technical analysis will cause a relatively quick descent into the $20k area; anywhere between $21k and $29k.
This will be the result of whales and algos drawing in the suckers, who arrived to the party far too late, to puke. I hypothesize, with zero quantitative support, that the $20k-ish price range in the gold oval above will draw in big money establishing a floor for the next move in BTC.
And I believe these moves will be hard and fast. A consolidation could then occur allowing time for new positioning, but I don’t think BTC goes sub-$20k.
This will in turn cause a selloff in all crypto-assets. And I think Ethereum could get sold off all the way down to $1200 but probably find strong support at $1400. Institutional support for the future of smart-contract based applications may set the floor at that $1200 to $1400 range in ETH.
Headlines from a few days ago like the following help to anecdotally support the thesis.
That bullish analyst quoted in the article was Kate Stockton of Fairlead Strategies. Have a read of her bio. About as accomplished as you can get for being a chartist.
I can only trade my beliefs about the markets within the edge that I’ve cultivated. I don’t see a bullish breakout yet. I see a falsely bearish breakdown, consolidation, and the beginning of the next leg of the advance. Handicapping future outcomes ain’t easy and trading imaginary patterns is typically a fast way to Lossville, so the price action is always the final arbiter.
Diamond hands and laser eyes aside, if you got some play-money then a better buying opportunity may well be on its way in cryptos.