Bitcoin is retracing as expected
The latest Bitcoin dump and where I see price going from here
It’s CryptoDan.
Hope you’re all having a great day today.
This is the first installment of my weekly newsletter diving deeper into the price action of Bitcoin and the broader crypto markets
Bitcoin is retracing as expected:
How was I able to know exactly what Bitcoin would do?
It’s actually rather quite simple:
Focus on HTF support and resistance
Understand that Bitcoin price action is designed to liquidate as many leverage traders as possible
Understand the concept of stop runs
Understand where its likely that funding will turn extremely positive, and show a clear indication of what way the market thinks price is going
This was my basic thinking: “On the weekly chart, 19k is the highest candle close. From experience, I know that the higher the timeframe, the more significant the support or resistance level. It would make sense, from my knowledge of stop runs, for price to temporarily break above 19k, in order for large players to get liquidty to sell their positions. I also know that at the current price of 17k, funding isn’t high enough for a top. Thus, price would reasonably have to go higher for more leverage traders to become bullish, so a short term top could be put in. This Bitcoin rally has also been literally straight up since 10k, and it wouldn’t make sense for us to literally just continue through ATH’s. (Genuinely, it just wouldn’t make sense. That’s my reasoning for that one). ”
Where do I think price is going now?
I want to see a retest of 18k, before continuation to the 15k region. But the thing is, my strategy doesn’t look to much into targets. I will buy when the market tells me to. I am not going to speak to the market, I will let the market speak to me. When funding turns negative, and my other suite of indicators look bullish, I will buy.
There is still however a chance that the bottom has been put in on that savage move down. Unlikely, but possible. I will reaccess in the coming days if anything changes!
I hope you guys enjoyed the first installment of my newsletter, still early days so I will take any advice you guys have to improve.
QUESTION: I want to know two things from my readers:
One, think of all your aspirations of life, do you want to be FREE?
Two, what’s your plan to get where you want to go?
I’m reading all replies.
All the best, CryptoDan