🔥 Bitcoin Massive Reversal On Conference Hype
After trading around the 29k-30k area for a couple of hours, bulls decided that it was enough and started a massive buying spree. As it looks now, BTC's daily candle is going to engulf the two (!) previous red candles of the 20th and the 19th. From a TA perspective, a bar like this has "reversal" printed all over it.
Two days ago I made a prediction about the upcoming reversal from the red area of support. See below for more details:
Several factors are playing into this reversal. In my view, the most prominent is influx of positive news from today's Bitcoin conference with big names like Elon Musk, Jack Dorsey and Cathie Wood. The latter announced that her investment firm bought a substantial amount of GBTC (Bitcoin shares) in the last two days, which is obviously good news.
All eyes are currently fixated on the violet trend line. In case that we can keep this bullish momentum going, we should be trading near the trend line in a day or two. With stock earnings season coming soon, I wouldn't be surprised if big names would announce that they've dipped into the crypto market. This would be the bullish catalyst which I've been talking about before. News like that could launch us back towards 40k in no time.
Assuming we're going to end up in the green this week, it might very well be the case that my earlier analysis on the relationship between BTC and the 50-week SMA might become true. In this analysis I foresaw a ~50% bounce from the SMA, with a top around 43k. Obviously, this is highly speculative since there's only two occurrences, but it's an interesting view nevertheless.
In continuation, the chart above represents my view on the current market cycle. In my view, we're currently seeing a mid-term correction. In the next 12 months I'm very confident we're going to see a BTC valuation of >100k, assuming this model will hold.
But first, let's make sure we're actually getting through the violet resistance.
Happy trading!
Two days ago I made a prediction about the upcoming reversal from the red area of support. See below for more details:
Several factors are playing into this reversal. In my view, the most prominent is influx of positive news from today's Bitcoin conference with big names like Elon Musk, Jack Dorsey and Cathie Wood. The latter announced that her investment firm bought a substantial amount of GBTC (Bitcoin shares) in the last two days, which is obviously good news.
All eyes are currently fixated on the violet trend line. In case that we can keep this bullish momentum going, we should be trading near the trend line in a day or two. With stock earnings season coming soon, I wouldn't be surprised if big names would announce that they've dipped into the crypto market. This would be the bullish catalyst which I've been talking about before. News like that could launch us back towards 40k in no time.
Assuming we're going to end up in the green this week, it might very well be the case that my earlier analysis on the relationship between BTC and the 50-week SMA might become true. In this analysis I foresaw a ~50% bounce from the SMA, with a top around 43k. Obviously, this is highly speculative since there's only two occurrences, but it's an interesting view nevertheless.
In continuation, the chart above represents my view on the current market cycle. In my view, we're currently seeing a mid-term correction. In the next 12 months I'm very confident we're going to see a BTC valuation of >100k, assuming this model will hold.
But first, let's make sure we're actually getting through the violet resistance.
Happy trading!
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