Dreams and hopes about the bull market will get crushed
With the majority of the popular profiles being bullish all the time, we have seen them call for the market bottom and primary trend reversal multiple times in the past year and a half. Then since October 2022, when Bitcoin made a low of $15 479, these calls have become even more omnipotent, with people profoundly believing in their ability to assess the situation correctly and time the market. However, history has taught us that this is rarely true, especially regarding retail investors and lay traders.
We continue to notice a lot of flawed opinions on TradingView, which forget to take into account fundamental driving forces of the market, including monetary policy and corporate earnings. In fact, some people like Alan Santana went as far as to say there will be no pullbacks in the “current” cryptocurrency bull market. Honestly, we do not know what to say about such statements anymore, only that they are promoted by people who do not know much about the market and chase clout instead. Unfortunately, it applies to 98% of the popular profiles on TradingView. Therefore, one should be wary that the number of followers does not equal market expertise or trading experience.
With that said, Bitcoin trades near the $22 000 price tag, down almost 10% from its high on 2nd February 2023. The price slump follows numerous warnings we issued about the bear market rally and is no surprise to us. In our previous idea, we outlined that the daily time frame started to turn bearish. Furthermore, we said if the price dropped below the 20-day SMA, it would support a bearish case in the short term (especially if supported by a simultaneous decline in the stock market). A few days later, after our statements, this happens to be the case, and now, we would like to see increasing volume accompany a declining price. Our price targets at $15 000 and $13 000 stay unchanged.
Illustration 1.01
Illustration 1.01 displays the daily chart of BTCUSD. The yellow arrow indicates a bearish breakout. If the price stays below the support/resistance, it will bolster a bearish case. Contrarily, if the price retraces above the level, it will be neutral/slightly bullish.
Technical analysis
Daily time frame = Bearish
Weekly time frame = Neutral
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
We continue to notice a lot of flawed opinions on TradingView, which forget to take into account fundamental driving forces of the market, including monetary policy and corporate earnings. In fact, some people like Alan Santana went as far as to say there will be no pullbacks in the “current” cryptocurrency bull market. Honestly, we do not know what to say about such statements anymore, only that they are promoted by people who do not know much about the market and chase clout instead. Unfortunately, it applies to 98% of the popular profiles on TradingView. Therefore, one should be wary that the number of followers does not equal market expertise or trading experience.
With that said, Bitcoin trades near the $22 000 price tag, down almost 10% from its high on 2nd February 2023. The price slump follows numerous warnings we issued about the bear market rally and is no surprise to us. In our previous idea, we outlined that the daily time frame started to turn bearish. Furthermore, we said if the price dropped below the 20-day SMA, it would support a bearish case in the short term (especially if supported by a simultaneous decline in the stock market). A few days later, after our statements, this happens to be the case, and now, we would like to see increasing volume accompany a declining price. Our price targets at $15 000 and $13 000 stay unchanged.
Illustration 1.01
Illustration 1.01 displays the daily chart of BTCUSD. The yellow arrow indicates a bearish breakout. If the price stays below the support/resistance, it will bolster a bearish case. Contrarily, if the price retraces above the level, it will be neutral/slightly bullish.
Technical analysis
Daily time frame = Bearish
Weekly time frame = Neutral
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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