A week begins that should play with our nerves. Bitcoin is guided, as it often is, by liquidations. Initially, the bearish attack of $27,000, and then we’ll see the status at that point.
Warning This article does not constitute investment advice or an invitation to invest. It is for information purposes only. You are solely responsible for your trading and investment decisions.
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Last week with Bitcoin (BTC)
A pseudo-bullish week. Why do you call it that? Because, sure, we went up a bit, but we did one job!
It is about to go north for liquidations. That’s what happened, leaving room for a big bearish opportunity due to the lack of buyer juice to push the price. The real question now is the breakout! Will it be powerful, signifying a return to the $25,000 level, or will it be gentler at the $27,000 level only? Would this not bring in new buyers, but liquidate the big leveraged buyers before moving up again? Here’s my plan:
The famous plan
Famous, famous, we’ll see if everything happens as it should, here it is.
The plan is here! Why this plan and under what conditions?
First of all, we know that the Bitcoin price is always looking to go and liquidate as many people as possible. Why is this? Simply because Binance and its CEX/DEX buddies make money when you lose money. So, overall, they have a very strong interest in liquidating you.
Right now, we’ve just liquidated a lot of long positions and launched a bearish leg. The logical thing to do would be to provoke as many buying liquidations as possible before tackling the sellers. However, buying liquidations are generally below the lows, here at $27,000. If you’re having trouble identifying them, you can use a screener like Mobcharts which will highlight them.
However, going to this level in no way guarantees a rebound! We could very well sink to the next big support at $25,000.
So we need to add some conditions. Mine are as follows:
- Long/short ratio above 65 for Bitcoin on Binance
- A decrease in the Open Interests of altcoins and a negative sink in funding
So, all these conditions will have to be met and maintained (I don’t want to see aggressive buyers appearing on altcoins in particular) for the trade to be valid. This doesn’t guarantee its success, only that at least I’ll have followed my plan.
His objective will be clear: Above $28,500
An article that’s a change from the ones we’re used to. It’s an opportunity for me to share with you a vision of my trading potential, even if I don’t have enough time to do so. I’m more of a long/medium-term trader for two reasons. The time I have available, but also the stress associated with the short term. You have to learn to manage it if you want to be able to pick up your screens properly during your rest periods!
For the medium to long-term plan, think about protecting your cryptocurrencies with our partner D’Cent. As for us, we’ll see you next week for a new article! Have a great week!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.