Short

BTCUSD / M-formation on daily looks very clear

Updated

Just scanning multiple timeframes and believe we have a near perfect M-formation on the daily.

Note

for M formations to hold, the second high has to be equal or lower to the first.
so this current high cant go above 7465.
if we go above 7465 the M is probably invalidated (very rarely does 2nd high go higher).

Note

100% perfect M formation still in play.
second high did not break 7474 first high, creating the standard M formation move, and then went down.

its the weekend however so moves are more volatile, and we still have to keep an eye on it and wait for monday/tuesday close.

IF M-formation continues, we will see similar downward movement as we saw upward movement between april 15-17th, before a huge dump to 5888 and lower
(MINIMUM it must move to 5888 to complete the M formation, though 90% likely will move lower)

Trade active

SHORT: 7150-7300
SL: 7474
TP1: 6149
TP2: 5888
TP3: 5322

Trade active

So far so good, following textbook M formation.

A significant note is that MONDAYS have typically been a GROWTH day for bitcoin over the past few months, but to follow this M formation we had a DOWN day.
This goes against the historical trend, and follows the M formation, which is a very strong (and common) market maker movement pattern.

The rest of this week should see sideways and downwards movement without significant dump until possibly Thursday, or next week.

I believe the market makers want to dump this to test lows before the halvening for a healthy rise afterwards, however everything in the market is erratic right now and it could be taking longer to move the market in this pattern due to significantly less market power.

Overall crypto market cap is down yet again and I believe it will continue downwards.

Last few weeks there was a fairly "artificial" inflation of the stock market due to many investors idea that the economy was going to V-recovery and bounce back, not being grounded at all in reality, that we are already in - and headed into worse - of a great depression than the actual great depression.
This is a common misconception of the market to be far too optimistic and want a return to profits, despite overwhelming evidence to the contrary.
They create an artificial pump in the market, that then exacerbates the following dump even further as there are no follow-on buyers in the market to continue any kind of uptrend.

youtube.com/watch?v=DOuid_vcP8U

Trade closed: stop reached

hit SL at 6900. not much profit.
could have sold manually at 6750-6850 level as well.
apparently tether printed another 120m so they are artificially pumping again.

ezpi

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