Bitcoin is in Cardiac Arrest? Get a defibrillator now!

As I do every week, I review the previous week’s analysis and then explain my vision for the week ahead. Here we go!

Disclaimer: This article does not constitute investment advice or an invitation to invest. It is strictly for informational purposes only. You are solely responsible for the trading and investment decisions you make.

Debriefing of the past week

I hope this chapter will be long soon, because for this week, it will unfortunately be very short! We are just back to where we were at the beginning of last week. Thank you very much! See you next week.

On a more serious note, nothing is happening, the volatility of Bitcoin has continued to decrease until it disappears. We’re probably in cardiac arrest. The good thing is that we still continued to attack buyers, especially with liquidation streaks, and we are not attacking sellers. We’ll see in the following sections why this may be a good point.

Reduced volatility for BTC
Reduced volatility for BTC

The eternal question with no (real) answer: an increase, a decrease, a stagnation?

So yes, of course, all three scenarios can be considered. But, two seem more possible in the short term.

Great liquidations await us

Indeed, the biggest argument for “influencers” now is the large amount of liquidation that is taking place in the south.

In the first chart, you can see that the triangle is still forming. Alas, the stats show a breakout to the south is highly probable. This probability is accentuated by the liquidations that await us there.

Bitcoin liquidations on Binance
Bitcoin liquidations on Binance

Indeed, the break in the SOUTH seems probable from this point of view. However, in the shorter term, I see many other things.

The hunt for buyers, beware dear sellers

Indeed, even though Bitcoin is moving very little at the moment, the smallest moves tend to be in the direction of buyer aggression and it is this point that could allow for a “short squeeze” (= quick liquidation of sellers) and allow for a quick return above $20500.

Bitcoin - Seller liquidation levels highlighted in red
Bitcoin – Seller liquidation levels highlighted in red

Moreover, my feeling is accentuated by the orderflow of altcoins. Indeed, it shows an increasing Open Interest (= positions opening) with a negative funding (= positions adding weight to sellers).

From my point of view (I’m a potentially blind), it is unlikely that Bitcoin will fall without first liquidating all those altcoin sellers!

Highlighting shorts on altcoins
Highlighting shorts on altcoins

Now we have to look at the most deadly case, cardiac arrest (the guy is hot on puns).

Another week of dead calm

Indeed, we could still have a completely boring week. This would be in line with the fact that a bottom is only set when market volatility is as low as possible. Moreover, I noticed a pattern that I describe here. To put it simply, the first painful phase stops when the Bollinger Bands get closer to 30% in a week! For the moment, we are still at 48%.

Highlighting the contraction of the Bollinger Bands - weekly scale
Highlighting the contraction of the Bollinger Bands – weekly scale

This would mean that we would have one or two more boring weeks… I sincerely hope not, otherwise I will have to come up with the same article every week…


As you can see, we are approaching the market bottom, this one could be right now, as it could be at $12,000. The only worry is that if it gets to $12,000 the altcoins will probably go -50 to -90% again! Take good care of yourself, your buying and risk management. Personally, I’m holding back in case this scenario ends up happening.

From my point of view though, we will surely have a small bullish breakout to liquidate the sellers. Once the liquidations are done, we will have to pay attention to the reaction of the market. If the market shows signs of weakness right away, then we may be heading to Hades at the gates of hell! But don’t worry, in any case, I’ll be there and Coinpri too of course!