BITCOIN (BTCUSDT) QUICK TA SCENARIO...Let the image speak for yourself...
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Crash
Bitcoin Crash Setup: Direct Crash or Bounce First?Bitcoin (BTCUSD) has now OFFICIALLY invalidated the bullish PURPLE setup that I covered which had us seeing a nested 1-2,i-ii setup in both BTC and ETH. This pullback is such a strong signal, that I have shifted to the RED bearish pattern as my PRIMARY! This pattern calls for a continuation of the pullback that started after our April 2021 top all the way down into the 20k range! GREEN is my bullish alternate pattern.
In Elliott Wave Theory, there is no stronger sign of a major impending trend reversal than seeing a 5-wave impulse break the price down through support. And that's exactly what we have seen in Bitcoin (and Ethereum)! We have a 5-wave impulse down that has broken below the major support at 39,600. While I expect a sharp 2nd wave bounce before the final drop, the GREEN pattern is NOT fully dead! If see a 5-wave impulse up and 3-wave pullback and the price exceeds our ATH, then the it is the RED pattern that is dead!
The RED alt pattern sees the entire rally from summer into November of 2021 as having been an ABC corrective B-wave rally, or a fake-out. That would make the next movement a ferocious C-wave crash down. As C-waves are always 5-wave patterns, we would look for an impulsive 5-wave movement downwards as the 1st subwave of this larger C-wave. And it appears that we more or less have that in place now in BTC and ETH!
From our Nov 10th top to right now, we can easily count a 5-wave impulsive drop that seems to fit appropriate Fibonacci targets. If this really is Wave-1 down of our larger C-wave down, expect a big Wave-2 bounce up to nearly 60k before the final drop begins. This would take the form of a 3-wave zigzag up and offer us a "gentleman's exit" to unload any holdings in preparation for the ensuing crash. However, there is a small chance that we don't get the bounce; if we break below the 32.7k - 35.9k region directly, I'm exiting my positions! That may be an indication that the 3rd wave down of the larger C-wave has already begun!
In summary, don't panic, but please do have your exit strategy prepared in case things turn bearish! Know when you will sell or IF you plan to sell. If you plan to 'hodl', then commit to it! There is a small chance that we have a 5-wave impulse take us right up through our 68k ATH, which would immediately kill the RED pattern, but until we see that, stay on your toes!
Check out my explainer videos on YT!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#bitcoin #cryptocurrency #blockchain #crypto
STOCK MARKET CRASH MARCH 2022 (LOG4J)This is the key chart to understand the market. Let's break it all down and what is likely to happen in Q1 2022.
First things first, it was not BTC which broke down first today, it was the stock market. The Dow ranged sideways for 9 months, not being able to break the high established in May. This has been highly reflected in the price action of Bitcoin, which was not able to maintain the bullish uptrend for more than one month at a time.
Despite all the injection of monetary supply since March 2020, the health and uptrend of the stock market has not been healthy. The economy has not worked at full capacity, and a smoke screen of monetary policies cannot hide the state of the economy and of assets prices.
Governments in Europe have just in the last four months increased the cost of energy by 800% in some countries, having a negative effect far and wide, not only to people and industries, but also for BTC, considering the cost of energy for mining. This also involved Kazakstan. The consequences of crypto downturn involve geopolitical events, that are now just starting to add up together and which might further affect the market in 2022.
If you look closely at the slope (angle) of the 200 MA on the Dow Chart, you can see that it's flat. What is happening is that it signals indecision, and it does not happen very often in stocks. Just in the last month we had three tests of support, indicating that the Dow will probably break down in the near future.
The compression of prices create large movements, this is an observed phenomenon in the market and also in physics. Stored energy will at some point be released, if a threshold is reached. That's what is now happening with stocks, and the difficulty to break the key resistance is indicating that the large movement will be down.
The large portion of the correction will, according to my estimates happen in March. This coincides with numerous economic and cybernetic events such as the FED largest taper of bond buying or the LOG4J problem, which will further put pressure on stocks.
The correction can range from the 0.618 FIB ($25,000 ) down to the 0 FIB ( $14,131 , down -63% from the TOP), which can take BTC all the way back down below 25k. If it happens, it will be similar to the dot.com crash with the internet companies, only this time it will happen with crypto.
Follow the trendlines!!!We broke our key trendline. The last time this happened we got the covid crash. Its better to stay out of the markets for now. We also broke the weekly bollinger band which could lead to further pain. I'll rather buy back a little bit higher with more safety. I am staying out for now. I wIll provide further updates later today.
Stay safe and know what you are getting into!
Will S&P 500 retest an important former breakout area this week?As you can see from the chart, there is a very obvious line of resistance that was broken two weeks ago during the Santa Claus rally. A line that held as resistance multiple times over the course of 1.5 months. The S&P is notorious for testing prior breakout and breakdown areas, especially when it is as important as this one and it was breached during a genuinely positive time in the market with lower volume.
I'm neither bullish or bearish on the S&P. What I do know is that the S&P is going to come back to that breakout point at some time. It's too important not to revisit because it caused multiple rejections and a lot of volatility off that resistance. That markets love to test these important areas.
Price can go higher and stay extended for some time. Eventually it should correct down to test the line.
Scenario A - Bullish: If price manages to get above the resistance and test the line and continue up, that's a buy.
Scenario B - Also Bullish: If price bounces off the important trend line, that's a buy.
Scenario C - Bearish: If the line does not hold as support, look for a rejection off the line, that's a sell.
Do not use real money to trade my idea. This is just fun for me to analyze and share my view of the market.
Good luck
The crash will probably start this year, but first: $5468 targetI'm predicting that we will get a correction to the september lows. After that, we will see an epic final run-up. Arround the target level of $5468, I am expecting a massive blow off-top. After that the trend is going to be nothing but down. The low of the recession will probably come to an end in 2025 (however I don't like to link prices to dates). Be carefull guys. We could be going into a recession very soon from now. If we get enough bad news, the blow-off top won't happen and the markets could fall any time from now. But I still think that we need some kind of blow-off top for a crash. The volatility index also shows that a big move is coming soon. It might be a great Idea to stay out of the markets. In my opinion we will most likely see it this year in the end of Q3/beginning Q4, but could be as early as early spring/now.
The market is looking very unhealthy and I wrote about that in november 2021. I will make an update soon. (This is not financial advice!!!) (Do your own research.)
Good luck everyone!!!
Duursma, Yuri.
One of the Most Important Charts You Will Ever SeeThe bond market often has an inverse relationship with the stock market since it is considered a 'risk off' asset. Bonds generally yield more interest for longer maturities. For example, a bond investor in a healthy economy would expect a greater yield for a 10 year treasury compared to a shorter duration. However, the yield curve can 'invert' (shorter term bond actually pays greater interest) when bond traders believe a recession is imminent. Since the Fed's reaction to a recession is to drop short-term rates to 0% and recessions cause 'risk on' assets like stocks to drop, the smart money will rotate from higher risk stocks (like tech, since it's future cash flows are highly sensitive to the cost of capital) and hide out in bonds to weather the storm and minimize downside risk.
Yield inversion info: www.investopedia.com
This chart shows the interest spread between 10 and 2 year treasuries in blue.
Shaded vertical boxes show where the yield curve inverted in the past.
The S&P is in red (at least I think it's red. I am color blind). Note how the shaded boxes start just prior to the dot.com peak, the GFC peak, and even the Covid recession.
Currently the interest spread is heading back towards zero as the Fed is set to hike short-term rates to combat inflation, likely beginning in March. At it's current drop rate, the spread will invert in ~Q4 of this year, which means a recession is on the table for the first half of 2023.
Keep checking back for updates as I will be watching this one VERY closely.
Is the S&P 500 About to Crash? It's getting close....The holy grail of trading is being able to confirm trend reversals. Using a proprietary indicator, I'm able to confirm, with a backtested over 90% accuracy a major trend direction change in the S&P 500.
The chart
On the left you have 3M candles. This is best for confirm a full blown bearish trend reversal as occurred in 2000 and 2008.
In brief, if on April 1st, price is BELOW the green line, there's a 90% chance price will not only continue down but that the longest bull trend in market history has come to an end. So watch that line and that date.
On the right you can see the 1M candle in the top right.
It's already breached it's support. If it closes on February 1st below the green line, price is likely to keep going down.
On the bottom right you can see the 1W candle. It's already clearly in a trend reversal. 1W is not long enough to predict overall market trends.
Time will tell, but my indicator, I call the Tenoris Indicator, latin for 'trend' is highly accurate back tested going back over 40 years. If you're interested in it LMK.
XRP III Will the dips take longer and reach further? 🆘🆘🆘🤬Hello everyone,
Technical analysis:
- More than a year of flag formation has been lost. Breaking the bottom line of the flag and successful testing, which may result in large drops.
- If the last hole is broken and confirmed by the 4h candle, we will fall even lower. Even around $ 0.3.
- It is possible to return to the flag, then we should expect a LONG towards the top line of the formation. (Less likely)
Fundamental analysis:
- 20.01.2022 in the United States, a government meeting is to be held on the environmental consequences of cryptocurrencies.
It's all about the energy that crypto mining uses. At the moment, miners use as much electricity as power all of Argentina: D
- I believe there will be negative information. This will contribute to further declines. The meeting will be broadcast on Youtube.
-XRP cannot be mined but will fly down after Bitcoin.
Comment and like,
Greetings
Oh, Lawd Please let there be a 41.73% crash in the NasdaqBreaking the channel? Not saying much yet but the stimmy's are only coming if there is a massive sell-off to eat up inflation by asset deflation. Then the FED comes to the rescue guns blaring. It's always a crisis that brings in the artillery.
Bitcoin will plummet to 23k-28kBitcoin has struggled in recent days. The rest of the market may be delinking itself from Bitcoin, but in an early economy, I think we're seeing a huge 'warning zone' much like we did last year before the crypto crash. Fib Circles and a series of supports based on common price floors and Bollinger Band/EMA critical points. Stoch K and EMA are both going southward too. After plummeting to 26k (still over 250% gain in one year) I believe Bitcoin will stabilize in a 34k-40k range for a while. A different analysis put ETH at it's mythical $9k high in Nov '22, so read into that as you will. Maybe Ethereum surpasses Bitcoin marketcap this year ... ? *shrug*
Classic fib circle playing out in double drop outer ring.
FTM Short - Added more to position, but not other shorts. In my previous few ideas I entered short into FTM, today I have added further to this position.
I am also short AVAX and LUNA. But why haven't I added more short to those 2 but I have to FTM? FTM still looks like it has 10-15% drop to horizontal support and even further to major trendline support. AVAX is at a confluence of levels and LUNA is quite close to major support. So overall I'm adding to the position that has the best risk to reward for a) taking profit and b)not getting stopped out.
The aim of the game with shorts is to be safe, critical of entry and exits, and to not will the market to do something. Take the profit that is given and be patient. If you exit short, that should indicate your long entry.