Bitcoin/Dollar Analysis and Trading Setups
BTC Crash Millionaire to Slum Dog and BTC Billionaire!
I will try to make this as simple as possible because I made this specially for my friends and family. First of all I am a stock, futures and options trader, not a Crypto Trader.
Once BTC -0.51% will start trading it's futures , it will be trading at a very different dynamics unlike it is trading right now. BTC -0.51% will be treated as big dogs such as Oil 0.30% , Gold -0.05% , Silver 0.37% , and other Commodities . "A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future." (Investopedia).
Why it will crash?
Fundamentals:
1.Big Holders of Bitcoin -0.51% will book their profit because once there is future contracts out in the market, they do not know what will happen to their investments. Pros will be watching its every single price movement. This will create huge volatile. With all those profits and free money, it is only rational to be safe than to be sorry.
2.When Big Holders sell their millions of bitcoins -0.51% at 20X or even 200X leverage, supply of the bitcoin -0.51% will surpass demand as it is a limited resource . Who knows there might be that one guys sitting on a million bitcoin -0.51% decide to sell all at once, and we all know what happens when 100K bitcoin -0.51% is sold at once.
- The price is speculative at the moment, it will be treated as legit commodity from now on. Yes the price will recover because there are many investors who are waiting for this moment to dive in but are looking for a correction. Don't forget the short sellers who really want this to go low so that they can sit on a bag load of bitcoin -0.51% .
Technical:
1.Long term Elliot wave 5 correction is the worse. Surprisingly bitcoin -0.51% also follows the Elliot waves theory. Since this is targeted at common people, here is the basic theory.
*Wave 2 cannot be longer in price than wave 1, and it must not go beyond the origin of wave 1.
*Wave 3 is never the shortest when compared to waves 1 and 5 (Price or Percentage wise).
*Wave 4 cannot overlap wave 1
*As a guideline the third wave shows the greatest momentum, except when the fifth is the extended wave.
*Wave 5 must exceed the end of wave 3.
*As a guideline the internal wave structure should show alternation, which means
different kind of corrective structures in wave 2 and 4.
This chart fulfills all these criteria
2.Previous correction and the corrections before started at the same fib level, what a coincidence, since the same fib 1.68 will be the next resistant according to the wave movement. (Yes the wave 5 will be simmilar magnitude to wave 1)
What Next?
- Expect ETH/BTC 2.70% to go up.
- Expect Other Cryptos to gain value.
- Waite for the bitcoin -0.51% to go down before filling your wallet with this valuable comodity
If the long term wave 5 surpasses wave three, This technical analysis would be invalid. But what are the chance of millions of people not getting spooked by technical and the fundamentals? I am just giving my perspective on this, the decision is yours!
Hope this helps, I am a dutch, its hard for me to clarify in English. But I hope you all got the jist!
dank je!
Bitcoin - Target $9000
Hi traders - Let see how this move develop in the next coming hours/days. I'll keep this post updated as much as I can
Thanks for support