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Bitcoin Technical Analysis: BTC Bears May Be About To Strike (May 2020)

VIDEO TRANSCRIPT

The price of Bitcoin, once again, Shortbus, nine thousand today. And they’ve got a lot of people thinking, what, this is going to be the beginning of a new uptrend or not or what Bitcoin was up to now at this point. It is very clear, and I think it is important for all of us to realize that this is the end of it. This is just going to be now a sideways movement for a while. I’m not discounting the possibility of a retest of nine thousand five hundred. It went something like nine thousand six hundred or seven hundred. It could still happen short term. It is possible because Bitcoin is going to be trading within this tight range for now. And that, I think, is going to last for at least a couple of weeks before we see that big move to the downside. Now, here’s the thing. This is the nine that I sketched before on this chart. I did this yesterday and as you can see here, it has declined down to this important support here. And this has to hold for Bitcoin to remain in this sideways region if it declines here. I think it would be difficult for Bitcoin to just climb back above it and then it would start trading sideways here in this region. So ultimately, what we want to see here on the daily timeframe is for Bitcoin to find some sort of, you know, short term support above this 200 moving average. So what is it? I mean, it has happened before and what it has done before, it could do it again. It kept on doing this again at this point, and it kept on trading sideways for a long while above this 200 moving average before it crashed. So the same thing could happen again. We could see trade sideways here for quite a while before it crashes. No, I’m saying this is possible. We could also see a decline below this twin and moving very straight away in one or two sharp Qantas. That is also possible. But at this point, what makes a lot of sense is for Bitcoin to trade sideways, to trap in more traders who are thinking that having run-up to the moon is still possible. And this would give them the reason to go along with the market. They are going to be thinking that Bitcoin is still in a position where it could be safe. Let me talk about the bears. A lot of bears were shaken out by this move, and many of them are too scared to get back into the market because there’s Chop’s who are run and they were shaken out. And I noticed there a lot of people who were getting very bearish on the market just saw seven thousand seven hundred. And these loans are of people who were getting very bearish because they were expecting a sharp decline from there. But that did not happen. Instead, we had this pump to the upside and now it has a broken bias. This tool in moving coverage, as well as shaken out a lot of stops here. So for this reason out of people, I was scared to be short on the market. And I think for them, the best thing to do would be for wait for a decline below this trend line support before it happens. There is no reason to be bearish on the market, only bearish in the market because this could easily see another week to the upside or some sort of movement before it declines. I mean, I keep saying that this would be sideways, but this kind of a week to the upside is still possible. It happened before and it could still happen again. So we could see a sideways movement here for a while. So let it be let the true decide this for a while. And then when it declines here, I mean, there is no need to be greedy here thinking that you are going to be making this extra few percent of gains and you be risking all of this for another potential upside here, which would shake you out again. So this is not a good time to be doing that. This is a time to wait for this to play out. And soon as we have a break, a clear break below this trend line support as we have previously seen here. Then there is a point where you would want to be bearish on the market. Let’s talk about it from here on the one-hour time frame, we can see that it has declined below this 50 moving average, but we still need to see further continuation here. We need to see it decline. And more importantly, we need to see this trend line break. The district line has not broken and we need to see this break before we decide that this is likely to be the local top. And it is going to take. But short term, I would not be surprised if it rates further to test this top again before it declines. But at the same time, I’m not going to be looking for bullish entries on the team at this point because this is too risky. This could easily retrace very sharply from here. And this is not a time to belong on the cryptocurrency market. This is not the time to be longer. And the stock market as well, because most of these things happen together. So the stock market is also at a point where we can expect a sharp decline because you can see that stock futures have started in the red for today and they have already declined much more aggressively from the sixty-one point eight percent retracement level. So we could definitely see further downside in the stock market. Now, just as I said about the cryptocurrency market, we could also see some sort of up and down movement short term. It could just do days. It could go up, down, up, down for a while before it kind of decides who breaks it down as it happens. But this is going to be the zone. This is going to be the resistance zone that I think the price is unlikely to break, boss. And it is going to keep on trading him here for a while before we see that decisive break to the downside. As I mentioned, in the case of Bitcoin, this decline is also going to be much more aggressive compared to what happened here. So by a September or October of 2020, I definitely expect a sharp decline in the stock market and the cryptocurrency market for cryptocurrency. I think Bitcoin is going to be trading below three thousand dollars by October of 2020. But for the stock market, it is also going to be brutal. But for Bitcoin, I don’t think two thousand five hundred or something like that is going to the bottom. I still believe that it is going to bottom at 1000 dollars or slightly lower. I don’t think Bitcoin is going to bottom at two thousand five hundred. So this is now one of the most important changes that we could be looking at at this point. And this is the charge for Bitcoin dominance. Let’s zoom out here and let me explain what is going on here. So since twenty fourteen or, you know, is like since the previous cycle, you can see that Bitcoin dominance has declined aggressively. And there was a time where, you know, a lot of Ahlquist started to rally and we saw this Alkon boom. And a lot of any kind of Alcorn’s or rally. And it didn’t make a difference what kind of a token it was. If it was on quite market cap, it was rallying with the rest of the market. So that trend is now going to be worse because Bitcoin dominance is now at a point of a breakout. If we just look at this chart, we can see that we are so close to this breakout here. And this could take like as I mentioned before, it could be a few weeks of sideways movement. It could take like, you know, thirty-five days. Forty-two days, like in the I mean, if it takes that long, if it does do that alone, there could be these much days. But if that doesn’t happen and we see a quick break to the upside, I mean which is more likely, I mean we have already seen Bitcoin dominance break positive two 200 moving average at this point. So if it continues to trade higher from there, then that decline could happen a lot sooner than we anticipate. And that is going to be game-changing for the cryptocurrency market. This is going to be the beginning of a new uptrend in Bitcoin dominance and a downtrend in the cryptocurrency market, which is going to be far more brutal this time. And you can see why. You can see why for yourself because this time Bitcoin dominance would be rising, posta to a new move, encouraged to begin a new uptrend to enter, you know, a bullish cycle, which has not happened before. It has been trading in a parish trend for a very long time. And now this is a time where it is about to flip bullish. So if Bitcoin dominance flips bullish, that is going to be extremely bearish for the cryptocurrency market. And that is something that we need to keep into account. And that is why, if you think about it, my target of 1000 dollars per bitcoin does not seem so far fetched. If we just think about what is happening here. So let’s talk about Alkan dominance now, and we haven’t looked at this chart in a while. And as you can see here, this is now extremely bearish. This is like a very bearish setup here. You can see that this is part of a large descending triangle. And soon as it breaks below this 200 moving average on the weekly time frame, this is going to be it. It is going to be the end for eloquence. And you can see if you zoom out here, you can see that this line has not been breached since the beginning of this data that we have here for Alkan Dominant. So if we were to draw this to a moving average like this, you can see that would probably be something like this. So we have previously seen that this has not been bridged before. This hasn’t happened before, since the inception of, I think, most eloquent. So for the first time in our history, we are likely to be seeing a bear market. And that is going to be extremely devastating, I think, for a lot of Falcons. Most projects would just go belly up and there would be probably investigations and prosecutions and I mean lawsuits and all that is going to happen. And that is going to push Bitcoin easily down to 1000 dollars, if not lower than that. And for all kinds that you can just imagine, it is going to be a whole different scenario. It’s going to be something extremely devastating. So this is why I keep saying that this. I mean, before it happened, well, before it happened, I said that Bitcoin halving is going to be one of the biggest bull traps in Bitcoin history. And I still stand by that. I think Bitcoin having is going to be this time, it is going to be one of the biggest bull traps because we are going to be seeing such a major decline from here. That is going to be I mean, for for a lot of traders that enter bullish positions around 9000 or still trying to enter police positions around these towers for these people. It is going to be extremely devastating because these people would be the first to be shaken out here by these Gang of four more so it would decline down to here. A lot of people would be shaken out. And then those top holders would trigger this major decline to the downside. Now, this time, as I previously mentioned, it’s going to be a lot more aggressive, this decline. It’s going to be very brutal. And we will see this happen a lot quicker. And I would not be surprised if, by July of 2020, you will see three thousand eight hundred again and then potentially some sort of short term upside before a decline down to two thousand five hundred or something by September or October of 2020. But after that, I think we are going to see another upside, which would lead a lot of traders into thinking that this was the bottom. And then we will see the final decline down to one thousand dollars. Now, it’s not clear to me yet whether that one thousand dollars could happen this year or in the first few months of next year, but below three thousand dollars are definitely expected this year. I think Bitcoin could definitely be trading below three thousand dollars by the end of this year. So let us talk about the euro for spirit, which I think has been trading in a range for a long time and is now at a point where it could break to the downside from here. And this has now reached the top of this range here. You can see that previously when it did that, this was an average of twenty 20. This was just this month and this was on the 14th of February 2020. And as you can see here, this is now likely to begin a short term downtrend from here. And we don’t know for sure if this is going to break to the downside. That is going to be a major breakdown that we are waiting for. But there certainly seems to be the case because this was a false breakout. We just draw a line here. You can see that this was a forced breakout here. This was a fast break. Because the descending triangle is most of the time they end up doing this. And this could be now interpreted in different ways. This could now be called a symmetrical triangle because of what it did here, because of a decline below down to this level here. So it could be a short, short term fake-out. But I definitely see this declining below this line here. And to begin a sharp downturn from here. So for the eurodollar, for espere, this most likely would coincide. This decline would most likely coincide with a decline in the stock market and which has not happened so far. But when that happens, we’re going to be seeing a major decline in despair. And therefore, for this reason, I think this is a time to be extremely cautious. And this is not a time to be thinking about being long on despair or to think about being long when the stock market or the currency market. So BTC, how longs to be with you as he shorts ratio. This is not something that I’ve talked about for a long time. And now I think the reason I’m talking about this at this point is that you know, one of you commented in the video and said that I should talk about this and I decided to talk about this because I see something different this time. You can see that this was an uptrend that started in BEATTIES, who as he longs to be BTC with these shorts. And it is an uptrend, had been there for a really long time. And this was till January of 2020 when we saw a lot of bullish periods in which in between. But now this uptrend has been broken and we have entered a downtrend here. And as you can see here, this would potentially be the beginning of further downside from here in BDC as your lungs, obviously with the shorts. And this to me is going to be the time where we are going to be seeing a downtrend in despair for the first time since we have the data available here on trading with. So on the weekly time frame, you can see here that it is this is like a, you know, some sort of this like a double top here. This is one shoulder. This is another shoulder. So this could be like a head and shoulders break down from here. For all we know. But at the same time, I mean, this could trade sideways for a while before the breakdown happens. But this is now a point where I’m definitely expecting a downtrend in BTC with Zilong, stability with these shorts. Because you think about this, a lot of these charges are lining up together to paint the same picture to fit into the same budget. And you can see the Bitcoin dominance is now at a point of a breakout. It could begin a new uptrend. And condoms are now at a point of a breakdown where it could begin a new downtrend. And Bitcoin, for that same reason, risks a major decline. This time, it is going to be much more aggressive because of these very same reasons. And I think this is a time where we need to think about what could happen to a lot of these old coins. If Bitcoin were to decline down to 1000 dollars or even to two thousand five hundred there, there’s going to be extremely brutal for a lot of ARQUIT projects. So this is a time to be extremely conservative and to be thinking about what’s happening in the world and what is happening in major financial markets and how that could impact Bitcoin rather than thinking about something so insignificant as Bitcoin, having to think that they’re just going to push Bitcoin to the moon. So that’s all for today. And thank you for watching.

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