Minor fakeout to $27 000 in Bitcoin before shooting for new ATHs
Many people wonder and fear whether Bitcoin has to go on the downside - if it can make it as low as $24 000, $20 000 or even lower. The longer we move around in this sideways range, the more technically convinced I become that this is an accumulation phase in the making.
This time we'll go beyond mere technicals and back up our claims with fundamentals too.
First of all, the Bitcoin fear and greed index is at a staggeringly low 10 out of 100. This means that people to a great extent have lost hope for Bitcoin and that they expect further downside to follow. Anyone who has studied market psychology knows that the market looks to inflict a maximum level of pain to as many market participants as possible at any given time. This is why it feels so good to buy at the top and terrifying to buy at the bottom, where each tick down makes you want to pull that catapult - and perhaps often do, too.
The current state in crypto space is what Warren Buffett notoriously refers to as "blood in the streets". For the often so golden brick crypto roads are presently full of noob and hodler blood that exits the market. But for every seller there is a buyer. At these levels it is the institutions - the collectives of funds that possess more money than any of us pathetic retailers can ever fathom. Those institutions are the entities that can move the price. And those institutions are buying heavily at these levels. And mind you, those are what we commonly refer to as "smart money".
Secondly, so far we have a textbook Wyckoff accumulation in play. It barely gets any more obvious than this. In an episode on my channel a couple of weeks ago I talked about how a fakeout to around $27 000 would both make perfect sense (as accumulations are typically followed by a final fakeout to shakeout the final weak hands) and how it would be inherently bullish for the crypto space. That analysis is fully in play and as long as Bitcoin does get that bounce reaction, things fully align with our technical expectations.
This time we'll go beyond mere technicals and back up our claims with fundamentals too.
First of all, the Bitcoin fear and greed index is at a staggeringly low 10 out of 100. This means that people to a great extent have lost hope for Bitcoin and that they expect further downside to follow. Anyone who has studied market psychology knows that the market looks to inflict a maximum level of pain to as many market participants as possible at any given time. This is why it feels so good to buy at the top and terrifying to buy at the bottom, where each tick down makes you want to pull that catapult - and perhaps often do, too.
The current state in crypto space is what Warren Buffett notoriously refers to as "blood in the streets". For the often so golden brick crypto roads are presently full of noob and hodler blood that exits the market. But for every seller there is a buyer. At these levels it is the institutions - the collectives of funds that possess more money than any of us pathetic retailers can ever fathom. Those institutions are the entities that can move the price. And those institutions are buying heavily at these levels. And mind you, those are what we commonly refer to as "smart money".
Secondly, so far we have a textbook Wyckoff accumulation in play. It barely gets any more obvious than this. In an episode on my channel a couple of weeks ago I talked about how a fakeout to around $27 000 would both make perfect sense (as accumulations are typically followed by a final fakeout to shakeout the final weak hands) and how it would be inherently bullish for the crypto space. That analysis is fully in play and as long as Bitcoin does get that bounce reaction, things fully align with our technical expectations.
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