Bitcoin Market: Another Dead-Cat Bounce?
Hi traders, today I'd like to share my opinions regarding the broader market.
Bitcoin.
- On the daily time frame, Bitcoin looks primed to pop, we're squeezing hard against this low volume area of resistance on decent volume so I wouldn't be surprised if we produced another leg up to to hit $8100 before correcting to $7800 or so:
... failure to gather enough momentum to break out would probably send us back to retest $7300 over the next couple of days though:
- It's on the bigger picture that things are getting interesting:
- As you can see on the chart above, we might be in the process of forming a hidden bearish divergence on the weekly chart. If you're unfamiliar with bearish divergences, those are high probability patterns that look like this:
- The last time we had such divergence this happened:
... see what I am getting at here?
- Now, I am not saying that the divergence will form, the price could rally higher than 10k on the announcement of a Bitcoin ETF and completely invalidate the pattern:
... however I might start to get worried if something like this happens:
In my humble opinion, this type of price action would be a clear sign that we've reached a local top and that a deep correction is brewing. How big would the correction be? Well, my gut feeling tells me that we could very well come to retest $6000 or even $5700 but, given the market's overall bullish fundamentals, I doubt we would be able to gather enough momentum to break below $5700 and establish a lower floor.
What about you traders, how do you feel about the overall market? Do you think we're headed to break above $10k or do you think a dead-cat bounce is more likely?
The weekend provided Bitcoin with a positive bullish movement back towards the expected reversal area of $7,800. After the huge market manipulations we saw over the previous week, i believe we could still see a potential reversal back towards the $6,000 region before the bullish run begins.
Bitcoin price rose 1.79% overnight, outlining the hope manipulators have created inside investors minds to invest after manipulating the market into believing that this bear run is finally over. although we still could see prices rise another $150 in a short space of time, the area of $7,800 could prove a major turning point in this believed bull run.
Definitely whales trying to resuscitate the market, it would take quite a bull-run to bring lots of new money back into Bitcoin though...
Waiting for the ETF decision to make a final judgement.
I agree. The market needs alot more then a pump to jump start the anticipated bull run! There has been lots of promising signs coming in over the past few weeks!
I doubt SEC will approve an ETF before FATF gives its recommendations at the G20 in October.
Coins mentioned in post:
You've gone crazy bwot'
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Nice analysis @tradealert. I agree...anticipation of the ETF announcement has people excited. Should that happen, all the TA in the world may get thrown out the window.
Thanks @workin2005, yeah price could ramp up quite a bit leading up to the announcement, with altcoin liquidity drying up in the process, I kinda expect a massive sell on the news when the decision gets finally made. Never a dull moment in crypto!
appreciate your work and your support..following and upvoting.
Thanks!
Thanks @tradealert ... "How big would the correction be? Well, my gut feeling tells me that we could very well come to retest $6000 or even $5700 but, given the market's overall bullish fundamentals, I doubt we would be able to gather enough momentum to break below $5700 and establish a lower floor." .... People were questioning me about this on my recent post, but after reading what you wrote, I do not think I'm exaggerating.
Hey there @crypto-investor, i really do think the floor is in at $6000 provided the ETF gets accepted, a rejection would wreck havoc in the market imo.