Looking at larger timeframes when analyzing crypto charts is a good practice. It gives you perspective on the overall theme of price action.
For bitcoin, that theme has been bullish in recent months. However, one is left pondering if that is about to change.
Reversal Candle, yikes...
Looking at the monthly timeframe we can see December is lining up to put in a nasty reversal candle. That huge up wick with the lower close after several green candles is what we call a bearish u-turn in the charting world.
Granted, it doesn't mean price is definitely going lower. It just means that if one is trading they would normally be looking at a bearish trade playing out in their favor.
There is still five days left in the month, so maybe price will rally to change the narrative or maybe January will ignore this bearish candle all together. Either way, not in love the price action on the monthly chart.
Posted Using InLeo Alpha
I am expecting a huge (correction, but that is not the correct word) crash, very big, and very short. (well, short for bitcoin. As in, you can't buy the dip, because you can't get onto the trading platforms) But, lots of other cryptos will be on huge sale. (Like XRP back down in the 20¢s)
I see it coming, but not sure when. Probably the spring 2025.
However, bitcoin likes to play with numbers a few times, and then never go that low again.
Yep, it will be interesting to see where that new bitcoin bottom is that we never see the prices below again.
From the figure it seems to me to see a bearish hammer, I expect to see Bitcoin at $90,000 in the next month
yeah if that hammer plays out I think 85K is likely in order.
Thanks for replying and clarifying your idea
You said in a previous Inleo AMA that 4 green months in a row are very unlikely (for BTC). Looks like BTC is about to take note of your observation, and have a slightly red one after 3 green. We'll see what we'll have in January...
Markets have been wild. I would agree that's a nasty candle but with institutions now playing the market we are at their mercy. It's jut like stocks they can pin markets or move them a few % in a day. The big guys have all the money and we are just along for the ride. I would make my bets on what's going to cause retail the most pain. With the amount of leverage that was cleared out I think the downside is a bit protected right now.
I'm hoping you are right! Not ready for sweating depressed prices yet.