BITCOIN is falling
Yesterday's sudden reversal to Bitcoin's ( BTCUSD ) strong rise early in the day, just below the 1D MA50 (blue trend-line) was far from ideal as it closed the daily candle in red. That brings to memory the last time that happened and was the last signal before a massive sell-off.
That was on May 04 2022. As you see the price was again rejected just before hitting the 1D MA50, only a few days after it marginally broke above it (April 21) but again failed, just like on September 13. Following the May 04 rejection, the resulting sell-off initially dropped by -36% and by June 18 it completed a -63% fall from the March 28 Top. Such huge decreases have not been uncommon throughout this Bear Cycle (which has been trading within a Bearish Megaphone pattern) and especially since the November 10 All Time High, whose subsequent drop was around -52%.
I have replicated the January 22 - June 18 price action (blue) and pasted it on the post June 18 sequence. That fractal that hints to a -61% drop at around $10000. If it follows the Megaphone's first drop of -52%, then it would result to around $12000. Whatever happens, that is indeed a scary fractal , in fact the scariest projection that can be made on BTC right now. It may or may not happen. What matters is to be prepared for both and apply a strategy that utilizes the appropriate risk management.
But what's your view on this fractal? Do you think it is realistic? What are your targets for Bitcoin on a 1-2 month horizon? Feel free to let me know in the comments section below!
That was on May 04 2022. As you see the price was again rejected just before hitting the 1D MA50, only a few days after it marginally broke above it (April 21) but again failed, just like on September 13. Following the May 04 rejection, the resulting sell-off initially dropped by -36% and by June 18 it completed a -63% fall from the March 28 Top. Such huge decreases have not been uncommon throughout this Bear Cycle (which has been trading within a Bearish Megaphone pattern) and especially since the November 10 All Time High, whose subsequent drop was around -52%.
I have replicated the January 22 - June 18 price action (blue) and pasted it on the post June 18 sequence. That fractal that hints to a -61% drop at around $10000. If it follows the Megaphone's first drop of -52%, then it would result to around $12000. Whatever happens, that is indeed a scary fractal , in fact the scariest projection that can be made on BTC right now. It may or may not happen. What matters is to be prepared for both and apply a strategy that utilizes the appropriate risk management.
But what's your view on this fractal? Do you think it is realistic? What are your targets for Bitcoin on a 1-2 month horizon? Feel free to let me know in the comments section below!
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