Bitcoin Declines From Blow-Off Top - BTC/USD Analysis
Updated
Hello, traders! It must come to you as a surprise that Bitcoin is declining following a "fakeout" (false breakout) from a bull flag. As a matter of fact, I am more surprised that price has managed to stay above $8,000 for so long.
Bitcoin was never supposed to hit $8,506 in this round but it did. Maybe the media played a part in it. However, I am more inclined to believe that most of it was done by whales to stop hunt bears that opened short positions around $8,000 and they succeeded brilliantly.
This blow-off top and fakeout you are seeing were obvious to spot. Why? The Winklevoss' ETF was never a factor for this recent Bitcoin rally because we knew it from last year that SEC would never have approved it. The selloff following news of its rejection was a joke! Let's just say the whales played us all.
Secondly, you have so many traders in TV telling you recently that Bitcoin is going to $8,800. Just like every trader was screaming $4,000 or $1,000 when Bitcoin was at $5,800 or $6,200 and it did the exact opposite - twice! In those two occasions, I was the only trader here telling you to aim $6,800 and $8,000, respectively. Was I right? Hell, yeah! This is all clearly stated in my Bitcoin Q3 Trading Guide that I posted back in July 1st - before price got to $6,800 or $8,000.
Now, I am telling you that Bitcoin is not going to $8,800 (called it first) because it is due for a price correction. Right now, Bitcoin is on a corrective wave that will lead price down to $7,600 - $7,720, the area marked with W. If that level holds, we will see a technical rebound to the level marked X - don't expect anything above former high of $8,506. If price breaches $7,600, it will test the next support level down at Y which is around $7,300 and Y will become W. We will talk about that later if it happens.
For those who want to see a bigger picture of where Bitcoin is headed, please refer to my Bitcoin Q3 Trading Guide.
As I have informed some of you, my upcoming Bitcoin Q4 Trading Guide will be postponed to late August or early September. I won't be sharing it publicly for obvious reasons which I will explain through private messages only.
Thank you for your support. Please give this chart a LIKE if you find its information useful - Good luck!
Bitcoin was never supposed to hit $8,506 in this round but it did. Maybe the media played a part in it. However, I am more inclined to believe that most of it was done by whales to stop hunt bears that opened short positions around $8,000 and they succeeded brilliantly.
This blow-off top and fakeout you are seeing were obvious to spot. Why? The Winklevoss' ETF was never a factor for this recent Bitcoin rally because we knew it from last year that SEC would never have approved it. The selloff following news of its rejection was a joke! Let's just say the whales played us all.
Secondly, you have so many traders in TV telling you recently that Bitcoin is going to $8,800. Just like every trader was screaming $4,000 or $1,000 when Bitcoin was at $5,800 or $6,200 and it did the exact opposite - twice! In those two occasions, I was the only trader here telling you to aim $6,800 and $8,000, respectively. Was I right? Hell, yeah! This is all clearly stated in my Bitcoin Q3 Trading Guide that I posted back in July 1st - before price got to $6,800 or $8,000.
Now, I am telling you that Bitcoin is not going to $8,800 (called it first) because it is due for a price correction. Right now, Bitcoin is on a corrective wave that will lead price down to $7,600 - $7,720, the area marked with W. If that level holds, we will see a technical rebound to the level marked X - don't expect anything above former high of $8,506. If price breaches $7,600, it will test the next support level down at Y which is around $7,300 and Y will become W. We will talk about that later if it happens.
For those who want to see a bigger picture of where Bitcoin is headed, please refer to my Bitcoin Q3 Trading Guide.
As I have informed some of you, my upcoming Bitcoin Q4 Trading Guide will be postponed to late August or early September. I won't be sharing it publicly for obvious reasons which I will explain through private messages only.
Thank you for your support. Please give this chart a LIKE if you find its information useful - Good luck!
Note
SKG79 asked a good question about the 5th subwave. So I went back to the drawing board and drafted this alternate scenario using Wyckoff trading cycle to include that missing 5th subwave. Note
As of now, we can see that Bitcoin is going along with the alternate scenario but we are not the only ones seeing this. If everyone gets excited about that double top, bitcoin will fall short. We have the ocean mammals to thank for that.Note
Looks like we have sellers taking advantage of those who were hoping for the double top after all. The trend might be hopping back to our original scenario but thankfully, we are prepared for both scenarios.Note
Looks like we caught our W, my friends. 7600 needs to hold if we want to see X.Note
Note
In case some of you wonder why I target X instead of $8,800 even though I am expecting an obvious breakout from the flag, hear me out... "For the last time, we are not going to $8,800 or higher without completing the XYZ correction. I expect that X to be a classic bull trap or a double top at most."Note
*WXY correction :)
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