Bitcoin produced a lower high 21-October compared to 29-July. It was moving up within a rising channel and as soon as it approached 70,000 it faced strong resistance. The peak price hit on the inverted correction was 69,555 and then a minor three days drop.
Yesterday we saw a strong green candle, one more shakeout, another market move intended to liquidate over-leveraged players; volatility and for some even hope.
The fact that today's session is full red and fully negates yesterday's bullish action is extremely bearish. It confirms that yesterday was a fake rather than natural move. The bearish action today confirms the charts bearish potential and we can expect lower prices.
We can also know Bitcoin is moving lower when we look at #2, the merge. If you consider Ethereum, it is trading super low and Coinbase continues to buy billions worth of ETH and load it up on its exchange. These ETH are not being bought to push prices up, it can't be done, these are being bought to sell to the masses at very low prices when the bottom hits. They have huge demand and they have been preparing for months. We can say they are ready though and this gives us a warning that the wait is over for this dip.
Other pairs in the Crypto-giant group are also bearish. This is revealing because they move together with Bitcoin. Since they move together with Bitcoin, being bearish means that Bitcoin is also bearish. The DXY is bullish and it works against Bitcoin and thus we have another confirmation.
Bitcoin was bullish for 77 days. 77 days is a long time in Cryptoland and yet, even after this long time Bitcoin produced no new higher highs based on the charts bigger structure, this is a sign of weakness. It is not weakness in the sense of Bitcoin being fundamentally weak but weakness in the sense that the price rise was something momentary, a bounce from the August major low rather than a bullish impulse. A bullish impulse would go to new highs and produce higher highs and higher lows. An inverted correction would be weak, produce no new highs and then crash massively. This is what we are seeing.
Some people might not be convinced even after 7 months of the same. The last bullish wave lasted 77 days but it has been more than 7 months since Bitcoin started to move lower.
It crashed to $49,000 in early August after five months of bearish consolidation. We are about to experience the second drop and this will end the correction.
After the correction is over, up we go.
The market is likely to feel Bitcoin's crash strongly, at first, but then it will recover pretty strong. Those pairs that are already low can recovery within hours or days. Those that are mid-way can recover within weeks. Those that are trading high up, can take months to recover and that's the main three variations we will get.
The crash wick can be recovered super fast but after this initial fast recovery the action will then turn slow. You will literally see Bitcoin crawling up slowly for months, say 3-5 months. Only after this major, long drawn-out bullish consolidation we will see strong growth. People will get bored, leveraged traders will get killed always expecting a big and major move, we will be watching and sharing everything that is happening with you.
The market ranges most of the time and only for short periods of time it goes into a trend. The big and easy money is made by joining this trend. A massive opportunity will open up soon, new lower prices, the lowest in years. This will be great.
New energies, new vistas, new people, new feelings, new potentials, a new cycle; growth.
Get ready for 2025, because we are about to witness the last correction of 2024.
