Bitcoin | A bigger shakeout is to come
Before I get in the technicals, allow me to set the general scenery first. From the one side we have the crypto Twitter community that keeps being bullish and spreading insane amounts of hype. However there are some people who are warning about possible downtrend to $20,000s. And they get hated by the community.
Michael Burry, from The Big Short, warns that a big bubble is being formed. It is worth to be added that Burry has opened short positions in
TSLA equal to the 40% of his net worth during the last week of May.
Elon Musk, China, Yellen and FED is trying to spread fear about Bitcoin specifically. Each one by saying different things.
Recently we noticed the short positions in Bitfinex piling up dramatically compared to the longs.
More technically, a 200/50 Death Cross happened on Bitcoin and it was not ignored by many big investors, making them worrying about another leg to the downside before the continuation of the bullish market.
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Now let me introduce you to my perspective of the market. A bearish leg came from $60,000~ down to $30,000~ shaking out 50% of the leveraged traders, and making the HODLers emotional. Since then we had an emotional rollercoaster among investors; being euphoric at near $40,000 prices and being bearish at the May 19th lows.
However, what I see here is a market that just had a very bad bearish leg, and now tries to distribute before another leg down. It would be so surrealistic thinking that we would make a new ATH from here, especially if we have a market structure like this. Price keeps cleaning both sides of the game. Firstly it moves towards the highs, cleaning the sellers before moving down to the $33,000 lows and clean the greedy buyers who keep placing longs sweating for the perfect entry.
The recent image remains extremely bearish though, and the current chart that we have doesn't seem different at all.
A bearish move towards the low $20,000s is expected. Here, the price action is so saturated that it's very unlikely for a bullish breakout.
Have a nice weekend!
Invest with care 🤞
Michael Burry, from The Big Short, warns that a big bubble is being formed. It is worth to be added that Burry has opened short positions in
TSLA equal to the 40% of his net worth during the last week of May. Elon Musk, China, Yellen and FED is trying to spread fear about Bitcoin specifically. Each one by saying different things.
Recently we noticed the short positions in Bitfinex piling up dramatically compared to the longs.
More technically, a 200/50 Death Cross happened on Bitcoin and it was not ignored by many big investors, making them worrying about another leg to the downside before the continuation of the bullish market.
---
Now let me introduce you to my perspective of the market. A bearish leg came from $60,000~ down to $30,000~ shaking out 50% of the leveraged traders, and making the HODLers emotional. Since then we had an emotional rollercoaster among investors; being euphoric at near $40,000 prices and being bearish at the May 19th lows.
However, what I see here is a market that just had a very bad bearish leg, and now tries to distribute before another leg down. It would be so surrealistic thinking that we would make a new ATH from here, especially if we have a market structure like this. Price keeps cleaning both sides of the game. Firstly it moves towards the highs, cleaning the sellers before moving down to the $33,000 lows and clean the greedy buyers who keep placing longs sweating for the perfect entry.
The recent image remains extremely bearish though, and the current chart that we have doesn't seem different at all.
A bearish move towards the low $20,000s is expected. Here, the price action is so saturated that it's very unlikely for a bullish breakout.
Have a nice weekend!
Invest with care 🤞
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