Bitcoin – All arguments why the bottom is close (in)
Bitcoin / TetherUS BINANCE:BTCUSDT
- This analysis will show you why the bottom of Bitcoin could be very close. This is a set of indicators that tell their own story, so let’s take a look at them.
- Currently, Bitcoin is the most hated asset in the world. Everything is rising, including gold , silver , stocks, the EUR/USD , indices, and even meta Facebook , the most stock. Bitcoin is the weakest asset. You can be a contrarian and buy it.
- But let’s take a look at the . As you can see, we have a trendline from the all-time high of 69,000 USD to the current price. The bulls already broke the trendline, but the bear was stronger, and the price was pushed down. The trendline is currently being retested, which is a common thing in trading. There is a pretty huge chance that every trendline will be tested again. Usually, you want to buy the retest. So we have a first buy signal here.
- Large institutions and hedge funds regard 200 moving averages as strong support or resistance. There are two types of possible curves for a moving average. The curve can be descending or ascending. In this case, the curve is ascending, which is an indication of an uptrend. The uptrend is still valid, and this is a sign. But the price is below the 200 MA, which is on the other side.
- Then there’s the . This downtrend could have moved in a complex corrective structure known as a double (WXYXZ). This structure must contain 3 zigzags for a total of 6 impulses. It is really possible that it is actually a double corrective pattern, which is .
- If we take a look at the indicator, we have historically had the highest on the Binance exchange. This is an indication of a massive exchange of Bitcoin . People are selling, but for every transaction, there has to be a buyer. Extremely high is an indication of capitulation and often indicates a trend reversal. During a stop-loss hunt, we typically see a huge spike and the price move in the opposite direction because the whales simply took the necessary liquidity.So massive spike can be a sign. It is a special event.
- The next indicator is the . There is a huge that cannot be ignored. is a very powerful indication that the bears are losing steam. It happens when the price makes a new lower low while the indicator makes a higher low. This is very .
- MACD: The histogram measures the difference between the two moving averages of the indicator. The histogram is ticking to the upside and is above the 0 level. If the histogram reaches above the 0 level, then the two moving averages cross each other. Recently, we have had a cross, which is a signal. This signal is still valid until the histogram falls below 0 again.
- FTX capitulation: A major player in the cryptocurrency industry has been wiped out. Capitulation is a sign of a trend reversal. When everyone is selling, it’s time to buy. It looks like a lot of retail investors just sold their Bitcoin holdings. Capitulation is one of the classic phases of the market cycle.
- CPI data was very positive, and is going down. As per my research in one of my previous analyses, I expect to drop to 0% in the next few years. If you follow me on TradingView, then you know why it can happen based on . But if you don’t, no worries! You can check out the 0% analysis in the related section down below!
- Gold is rising pretty significantly along with the DJI stock market index, which is also very good for Bitcoin .
- DXY dollar index is falling; the dollar is currently losing strength, but of course, it can be only temporarily.
- Believe it or not, but Bitcoin can rise 50% in a single week, and it can happen so fast. One tweet from CZ and the job is done.
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