Why BTC could be going MUCH lower. Part 1: The Hammer strikes
Moving averages. Whether you love them or hate them, trade with them or without them the fact of the matter is that some of them are very significant, even on their own as they can act as support and resistance. Once they cross however, their power can absolutely make or break a market as seen countless times in the stock and gold market but also with Bitcoin and, most recently, its death cross in April of 2018.
What surprises me at this point in time is that not a lot of people, even the analysts that I follow and look up to, are talking about the impending MA cross that is about to happen.
The 20 weekly (red) acted as support during the entire bull market and as heavy resistance during the current (and also previous) bear market. We are currently right below it and so far failed to push (decisively) through.
The 200 weekly (green) is perhaps the most important MA in all asset classes across all time frames and, in relation to Bitcoin, represents a line that has literally NEVER been broken and in fact was the point at which the previous bear cycle bottomed/ended.
In short, these two are probably THE MOST important MAs when it comes to Bitcoin, period.
And they are about to have a cross.
Since this has literally never happened before I can only guess what the outcome of this will be. I can tell you one thing though, expect some absolutely massive volatility. Think of it like a giant hammer, ready to either demolish everything in its way or produce a spectacular piece of metal art work.
Timeframe? Assuming the MAs dont change trajectory significantly, expect the cross to happen as early as on the 8th of April but no later than on the 22th of April (blue box).
My personal opinion is that we are getting closer to our final capitulation stage. Be on the lookout for Part II and III of the series where I will further expand on my extremely bearish views for the short and mid - term.
Thank you!
What surprises me at this point in time is that not a lot of people, even the analysts that I follow and look up to, are talking about the impending MA cross that is about to happen.
The 20 weekly (red) acted as support during the entire bull market and as heavy resistance during the current (and also previous) bear market. We are currently right below it and so far failed to push (decisively) through.
The 200 weekly (green) is perhaps the most important MA in all asset classes across all time frames and, in relation to Bitcoin, represents a line that has literally NEVER been broken and in fact was the point at which the previous bear cycle bottomed/ended.
In short, these two are probably THE MOST important MAs when it comes to Bitcoin, period.
And they are about to have a cross.
Since this has literally never happened before I can only guess what the outcome of this will be. I can tell you one thing though, expect some absolutely massive volatility. Think of it like a giant hammer, ready to either demolish everything in its way or produce a spectacular piece of metal art work.
Timeframe? Assuming the MAs dont change trajectory significantly, expect the cross to happen as early as on the 8th of April but no later than on the 22th of April (blue box).
My personal opinion is that we are getting closer to our final capitulation stage. Be on the lookout for Part II and III of the series where I will further expand on my extremely bearish views for the short and mid - term.
Thank you!
Penafian
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