If you look at the current pattern, we have what appears to be a bearish pennant . If you do a "by the books" target for breakout, that would land it firmly at a double bottom around $30k.
That said I don't expect we have the liquidity for such a dump at the moment, unless whales spend a great deal of their holdings to do so. We still see macro net accumulation of Bitcoin as supply continues dropping on exchanges. But this could still take a while to play out. Rejecting from the 20/ 21w MA support band is a strong sign that sentiment is rising bearish , and this is compounded by the back to back whale dumping this week from Binance and Bitfinex whales who clearly want to see price drop more.
Bottom line: While I don't think a drop down to $30k is a high likelihood scenario, it is possible and you should plan on this as a possibility. This is probably a good opportunity to DCA into spot positions.
That said I don't expect we have the liquidity for such a dump at the moment, unless whales spend a great deal of their holdings to do so. We still see macro net accumulation of Bitcoin as supply continues dropping on exchanges. But this could still take a while to play out. Rejecting from the 20/ 21w MA support band is a strong sign that sentiment is rising bearish , and this is compounded by the back to back whale dumping this week from Binance and Bitfinex whales who clearly want to see price drop more.
Bottom line: While I don't think a drop down to $30k is a high likelihood scenario, it is possible and you should plan on this as a possibility. This is probably a good opportunity to DCA into spot positions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.