Down Down BTC Goes. Where it Stops Nobody Knows
It is hard to believe that a week ago BTC was at 8.5k. And we thought we'd never see 8.5k again. Well today we see 7.7k and we are still seeing red candles. 8.5k looks pretty high from where we are standing. 2 weeks ago we were at 10k. We're have broken through all "support levels" and buying regions that were suppose to support the price. What happened?
How low can BTC go? It is difficult to say because support levels don't offer much support any more. To shed some light on the direction and speed we are going, I have resurrected my pitchfork chart that shows the descent of BTC. Please note it is broken up into 4 channels; CH1 is the blue channel at the top, CH2 is the top green channel, CH3 is the bottom green channel and at the very bottom we have the blue CH4 channel. The white center line separates CH2 and CH3.
THE BULL TREND IS OVER.
In order for BTC to get a bull run going to the moon, it must break out of the pitchfork entirely to the upside. If BTC can't get out of the pitchfork to the upside, then it is going down. Two weeks ago BTC was in CH1 and had the potential to break out to the upside, but never had the bullish momentum. On the week of Sept 23 we experienced an elevator drop from the top channel and wicked briefly to the bottom channel before we settled into CH3. The weekly candles are still red. Never before in a bull trend has a weekly BTC chart ever had 3 consecutive red candles. Starting in August BTC has had 3 consecutive red weekly candles and in September/Oct we have had 4 consecutive weekly red candles. I cannot stress this point enough. We are no longer in a bull trend. Stick a fork in it. It's done. Anyone who still thinks BTC is in a bull trend, needs intervention. LOL
Crypto Zombie (YT channel) today discussed an indicator I haven't used before called the SuperTrend, and I plotted it on the chart you see here. On a weekly chart the SuperTrend indicator does not have any whipsaws like other indicators do. It is a lagging indicator so when it turns bullish, other indicators would have turned bullish a few weeks earlier. The SuperTrend indicator turned bullish when BTC was only $310 on July 6, 2015 and stayed green until the sell off in January 2018 and got us out around 11.5k. That was one huge run of 370% using just one indicator and one trade. It tend stayed red all the way through 2018,including the Sept avalanche sell off, until early April 2019. I find this to be quite remarkable. It would have kept us out of the 2018 bear market for the entire year, and gotten us back in around 4.5k in April of this year. Not bad. Why am I mentioning SuperTrend now? Because as I write this, my alarm bells just went off and SuperTrend has just turned Bearish. If it stays bearish then it I'd strongly advise you to take it seriously and prepare for more downside.
How low can it go? Hard to say. The yellow dotted trend line started in April 2019 so it may not offer much support at 7k. The red dotted trend line started in early 2017 and may offer support at 5k.
If BTC goes bullish then it must break through the white center line so keep an eye on that. BTC could take off and that center line is key to a bull run starting up. If it manages to break out of the Pitchfork to the upside then the bull run is under way. But iIf BTC stays in CH3 or CH4 then it is most certainly headed lower just as you would expect a ball to do when it is dropped off of a table.
There you have it. The Bull is dead and the bears are cooking steaks on the BBQ. The SuperTrend claxon is sounding and you better prepare for rough weather. If you are a trader and know what you are doing, you can short BTC, EOS, XRP, or ETH, with or without leverage on ByBit. I've been using it for 6 months with good results. But you need to be an experienced trader with knowledge of TA to use leverage. So be warned.
As always, please do you own due diligence when buying or selling cryptos.
Please hit the like button on your way out the door. :-)
How low can BTC go? It is difficult to say because support levels don't offer much support any more. To shed some light on the direction and speed we are going, I have resurrected my pitchfork chart that shows the descent of BTC. Please note it is broken up into 4 channels; CH1 is the blue channel at the top, CH2 is the top green channel, CH3 is the bottom green channel and at the very bottom we have the blue CH4 channel. The white center line separates CH2 and CH3.
THE BULL TREND IS OVER.
In order for BTC to get a bull run going to the moon, it must break out of the pitchfork entirely to the upside. If BTC can't get out of the pitchfork to the upside, then it is going down. Two weeks ago BTC was in CH1 and had the potential to break out to the upside, but never had the bullish momentum. On the week of Sept 23 we experienced an elevator drop from the top channel and wicked briefly to the bottom channel before we settled into CH3. The weekly candles are still red. Never before in a bull trend has a weekly BTC chart ever had 3 consecutive red candles. Starting in August BTC has had 3 consecutive red weekly candles and in September/Oct we have had 4 consecutive weekly red candles. I cannot stress this point enough. We are no longer in a bull trend. Stick a fork in it. It's done. Anyone who still thinks BTC is in a bull trend, needs intervention. LOL
Crypto Zombie (YT channel) today discussed an indicator I haven't used before called the SuperTrend, and I plotted it on the chart you see here. On a weekly chart the SuperTrend indicator does not have any whipsaws like other indicators do. It is a lagging indicator so when it turns bullish, other indicators would have turned bullish a few weeks earlier. The SuperTrend indicator turned bullish when BTC was only $310 on July 6, 2015 and stayed green until the sell off in January 2018 and got us out around 11.5k. That was one huge run of 370% using just one indicator and one trade. It tend stayed red all the way through 2018,including the Sept avalanche sell off, until early April 2019. I find this to be quite remarkable. It would have kept us out of the 2018 bear market for the entire year, and gotten us back in around 4.5k in April of this year. Not bad. Why am I mentioning SuperTrend now? Because as I write this, my alarm bells just went off and SuperTrend has just turned Bearish. If it stays bearish then it I'd strongly advise you to take it seriously and prepare for more downside.
How low can it go? Hard to say. The yellow dotted trend line started in April 2019 so it may not offer much support at 7k. The red dotted trend line started in early 2017 and may offer support at 5k.
If BTC goes bullish then it must break through the white center line so keep an eye on that. BTC could take off and that center line is key to a bull run starting up. If it manages to break out of the Pitchfork to the upside then the bull run is under way. But iIf BTC stays in CH3 or CH4 then it is most certainly headed lower just as you would expect a ball to do when it is dropped off of a table.
There you have it. The Bull is dead and the bears are cooking steaks on the BBQ. The SuperTrend claxon is sounding and you better prepare for rough weather. If you are a trader and know what you are doing, you can short BTC, EOS, XRP, or ETH, with or without leverage on ByBit. I've been using it for 6 months with good results. But you need to be an experienced trader with knowledge of TA to use leverage. So be warned.
As always, please do you own due diligence when buying or selling cryptos.
Please hit the like button on your way out the door. :-)
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