THIS IS WHY BITCOIN IS DUMPING!!!!
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Q: Why is Bitcoin dumping?
Why is Bitcoin dumping? A bearish divergence on the daily timeframe and a double top pattern indicate a correction is underway before a potential rally to new all-time highs.
1. Bitcoin's Current Price Drop and Bearish Signals
1.1. Technical Indicators Pointing to a Correction
- Bearish Divergence on the daily timeframe is a key reason for Bitcoin's fall, as previously discussed in a bearish scenario .
- Bitcoin encountered significant yellow resistance, a long-standing resistance level .
- A double top pattern, also known as the "McDonald's pattern," is another bearish signal that was previously identified .
- The target for this double top pattern is 79.6, which Bitcoin is currently very close to reaching .
- This target is calculated by measuring the distance from the top to the neckline of the pattern and projecting it downwards .
- The double top pattern solidified a bearish outlook, shifting the previous bullish lean .
- While a short trade is technically possible, it is advisable to wait until Monday, as there's a slight chance Bitcoin could reverse to 84k before then, though this is considered unlikely .
- The more probable outcome is a close that confirms a correction before prices head higher .
- The worst-case scenario for this correction is 71.3k, though it is considered unlikely to go lower than that .
2. Trading Strategies and Future Outlook for Bitcoin
This section outlines recommended trading platforms, personal investment strategies, and long-term price predictions for Bitcoin.
2.1. Recommended Exchanges and Trading Advice
- Several exchanges are recommended for trading Bitcoin .
- WEEX is highlighted as the best exchange, available globally without Know Your Customer (KYC) requirements .
- Kalshi is available in the United States, offering a "$25, get $50" promotion for a limited time .
- Bybit is recommended as the new leading exchange, replacing Binance due to its superior liquidity and a bonus of up to $30,000 for new deposits from Binance .
- The speaker advises against selling Bitcoin during this correction .
- Instead, the strategy is to buy more if the price drops further .
- The speaker personally sold all cars to buy more Bitcoin, intending to hold long-term .
2.2. Personal Trading Positions and Long-Term Price Targets
- The speaker's $3 million long position in Bitcoin remains untouched and open .
- An Ethereum position has a stop-loss near the entry point, likely to be triggered if prices continue to fall .
- Profits were already taken on WEEX and Yobit a couple of weeks prior when prices were at their highs .
- Bitcoin is expected to reach the "absolute moon" once it breaks above the yellow resistance line, following a potential correction .
- A beautiful inverse head and shoulders pattern is forming, which, if it breaks out, could take Bitcoin to an all-time high of approximately $125,000 .
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