So, what could Bitcoin have in mind for us next? I wonder. Check out this important pattern Bitcoin's been trading within on the long term! This is in addition to my previous idea so read if you wanna get the real info on Bitcoin and get a good idea of what could come next!
Please be sure to read the previous/linked Idea if you wanna see my short term in depth review on things and why we have seen this dramatic fall today, thank you!
Let's Look!
You can see the falling pattern we've been stuck within and how whenever we would break out it would follow with us getting dragged down again and experiencing a rather dramatic fall. We can see all of the Fib supports that we've simply broken through and I've shifted from my Long stance earlier in the week to Short now as we couldn't hold that support at the $37,500 point I pointed out previously and we have formed a new low which well, definitely isn't the best. That's not to say that this is impossible to break out of and we're just gonna keep falling. This quarter in general has been bad with all that's been going on from Russia's invasion of Ukraine seeming to only Intensify by the day, inflation fears, and rate hikes which have rattled investors as well as the market this week.
FIB
I can't predict anything of course, but as always we love having the FIB to give us just an idea of what's going on or why somethings happened. One of the big factors for Bitcoin was that we needed to see it break that 40k Fib for confidence and to perhaps see more strength enter the market. However Makers came in and dumped on the market nearly perfectly causing a domino effect resulting in mass liquidations which has brought us to a low we haven't seen since March. This is important to watch as usually whenever we enter those low Fib's, especially the lowest we see a strong pullback follow but in this case it's not as likely. With how the market's acted today you can expect a lot of traders were wiped out of their positions and it's not likely for us to see a strong fight on the short term. Usually after we deal with these big falls and what some call flash crashes, you see the market take a break for a day or two, market makers will do their thing and try to bring the price up or down as much as they can but with regards to actual traders and investors, a lot of them were wiped out today of their positions. So expect some time before we see a lot of retail investors reenter the market.
What the market usually does following a flash crash
Usually it's pretty weird what follows a flash crash like this but we always see a pullback thanks to some investors buying at the new "bottom" as they see it or traders opening futures positions with leverage, some retail investors jumping back in or simply someone trying to dollar cost average. This is what gives us those boost you always see after these jumps and in a way forms sort of a zone that some can determine is a new support level. Here it can get pretty intense since it's mostly whales and market makers that are trying to sell at this point or keep pushing the price down, and they are dealing with a market of individuals that mostly are wanting to instead buy as they don't have the capital of course to sell like whales do. So it kind of becomes this sort of tug a war between the two.
Support
Being as we have fallen back into the falling pattern I'm still short on my position for the short term at least. If we see a breakout that can pull and bring us back up to $39k and we sustain support there then I'll shift back to bullishness but for now we're likely to have a lot of investors sit out for the next one or two days as they also watch how the market "reacts" following this drop so don't expect huge volume or actions unless it's on behalf of whales by which then you should be cautious of course due to manipulation as I always point out. We completely broke through that support I have marked and are nearing yearly lows. It doesn't help either that our Keltner Channel Strat. has signaled Bearish as of the last point so that's another point.
EMA Death Cross
Our EMA on the long term is still in it's Death Cross pattern, still falling ever since it left that EMA support and 'left the mountain' as I always like to refer to it. You can see where I circled the point of the mountain's exit and how since then we have yet to come back into contact with our next 'mountain'. Until we form that next Golden Cross, it's gonna be bearish as technical traders won't be confident until we see that form again. Hope that makes sense but in the least until that cross forms we are on Bearish but I have feeling we won't keep falling for much longer.
Thank you for taking the time to read this and please be sure to check out the linked previous idea for more to note and please be sure to leave a like and follow and share. It is always appreciated and I hope you have a great day and as always, be sure to do your proper DD and keep cool in times like this! It won't always be easy but remember, nobody ever said success was gonna be easy!
~ Rock
Please be sure to read the previous/linked Idea if you wanna see my short term in depth review on things and why we have seen this dramatic fall today, thank you!
Let's Look!
You can see the falling pattern we've been stuck within and how whenever we would break out it would follow with us getting dragged down again and experiencing a rather dramatic fall. We can see all of the Fib supports that we've simply broken through and I've shifted from my Long stance earlier in the week to Short now as we couldn't hold that support at the $37,500 point I pointed out previously and we have formed a new low which well, definitely isn't the best. That's not to say that this is impossible to break out of and we're just gonna keep falling. This quarter in general has been bad with all that's been going on from Russia's invasion of Ukraine seeming to only Intensify by the day, inflation fears, and rate hikes which have rattled investors as well as the market this week.
FIB
I can't predict anything of course, but as always we love having the FIB to give us just an idea of what's going on or why somethings happened. One of the big factors for Bitcoin was that we needed to see it break that 40k Fib for confidence and to perhaps see more strength enter the market. However Makers came in and dumped on the market nearly perfectly causing a domino effect resulting in mass liquidations which has brought us to a low we haven't seen since March. This is important to watch as usually whenever we enter those low Fib's, especially the lowest we see a strong pullback follow but in this case it's not as likely. With how the market's acted today you can expect a lot of traders were wiped out of their positions and it's not likely for us to see a strong fight on the short term. Usually after we deal with these big falls and what some call flash crashes, you see the market take a break for a day or two, market makers will do their thing and try to bring the price up or down as much as they can but with regards to actual traders and investors, a lot of them were wiped out today of their positions. So expect some time before we see a lot of retail investors reenter the market.
What the market usually does following a flash crash
Usually it's pretty weird what follows a flash crash like this but we always see a pullback thanks to some investors buying at the new "bottom" as they see it or traders opening futures positions with leverage, some retail investors jumping back in or simply someone trying to dollar cost average. This is what gives us those boost you always see after these jumps and in a way forms sort of a zone that some can determine is a new support level. Here it can get pretty intense since it's mostly whales and market makers that are trying to sell at this point or keep pushing the price down, and they are dealing with a market of individuals that mostly are wanting to instead buy as they don't have the capital of course to sell like whales do. So it kind of becomes this sort of tug a war between the two.
Support
Being as we have fallen back into the falling pattern I'm still short on my position for the short term at least. If we see a breakout that can pull and bring us back up to $39k and we sustain support there then I'll shift back to bullishness but for now we're likely to have a lot of investors sit out for the next one or two days as they also watch how the market "reacts" following this drop so don't expect huge volume or actions unless it's on behalf of whales by which then you should be cautious of course due to manipulation as I always point out. We completely broke through that support I have marked and are nearing yearly lows. It doesn't help either that our Keltner Channel Strat. has signaled Bearish as of the last point so that's another point.
EMA Death Cross
Our EMA on the long term is still in it's Death Cross pattern, still falling ever since it left that EMA support and 'left the mountain' as I always like to refer to it. You can see where I circled the point of the mountain's exit and how since then we have yet to come back into contact with our next 'mountain'. Until we form that next Golden Cross, it's gonna be bearish as technical traders won't be confident until we see that form again. Hope that makes sense but in the least until that cross forms we are on Bearish but I have feeling we won't keep falling for much longer.
Thank you for taking the time to read this and please be sure to check out the linked previous idea for more to note and please be sure to leave a like and follow and share. It is always appreciated and I hope you have a great day and as always, be sure to do your proper DD and keep cool in times like this! It won't always be easy but remember, nobody ever said success was gonna be easy!
~ Rock
