Hello everyone! As you know, we have not said a word for days. The reason for that is that we have prepared a whole dualistic theory that will really make you make money in the next bearish wave of the cryptocurrency market.
As many know, and according to the Stock-to-Flow Model of Bitcoin, the market will be bullish until this asset breaks 100k and up to a maximum bet of 300k. The best of the case is that there is already a probabilistic reason that this happens quickly.
According to the previous model, Bitcoin must reach its first peak between the end of May and June or consequently by the end of the next period end (Q2). However, many of the theorists that are around there will begin to tell you many lies, and among that, the one that says that the market will continue infinitely bullish.
We do not. We want to stop lying and give you the whole truth. Simply the pure truth. That truth that says that “happiness will not last forever” and very soon we will have a correction that will scare many.
A Careful Silence
One of the fears that we want to avoid is the massive accumulation of altcoins. Don’t really believe that futile lie of buying everything and becoming a millionaire overnight.
As many have seen, Bitcoin has been defending the current zone of 58165.15 and 51672.14. A good area to do short-term operations, but very bad for the accumulation of the other cryptocurrencies on the market.
Here is our main lesson: halfway through it is better to invest in what has a correlation with the main asset of the market than with what multiple companies want to sell you to obtain their own benefit.
With the above, we know that since the bull cycle of 2017, the cryptocurrency market has become very competitive. But we also recognize that there are also people out there who do not even know what a downward trend line is. A really not funny joke.
For that reason, do not trust too much in this current cycle of accumulation that we are living. Rather, it relies on the experience of previous years; and what to a great extent will allow that your confidence does not turn into a dangerous silence.
The Accumulation That Scares
During the close of the previous period, we have informed you that we have been in an ABCDE accumulation and that the market is lateral and neutral. The truth is that this is neither positive nor negative. It is simply a natural state that Bitcoin must go through in daily trading times.
Elliot again? Why? We do not trust Elliot’s theory 100%, but we see that the patterns repeat themselves and the previous case is no exception. But although we do not trust at all, we see that it has gradually helped us to understand the real behavior of the market and not lie to you as many have been doing.
The paradox learned about the above then is: “before moving a bowling pin it is necessary to study the trajectory”.
Imagine that from one day to the next you are a bowling professional, but one day you fail out of nowhere, well that is how an investor feels when he does not know the path to take. One day he is excellent, but the next day he fails out of nowhere and his confidence worsens.
But do not panic, that accumulation that we see in the 51k and 58k region is a normal and healthy market pattern. Then and according to the above, it is very important that Bitcoin breaks the diagonal resistance of 61 and very close to the psychological number that the upper Bollinger band currently shows us.
The Leap Of The Cat
If you want good advice we would tell you not to bet on the present. Best, bet on the future and the futures tells us that it is promising.
That future is showing on a weekly basis that we still continue with the bullish pennant pattern, which according to external sources, is a continuation chart pattern, seen when a security experiences a large upward or downward movement, followed by a brief consolidation, before continuing to move in the same direction.
Along with the above, and with the weekly close this, we see that Bitcoin has tried for the fourth time to break the resistance of 60k. This break has gone hand in hand with a curious fact. If you look closely, the upper Bollinger band is already beginning to show the upper limit at which the price will arrive in the next few weeks and is very close to the 0.6 of fibo and at 72727.13.
According to that, a first price projection would be limited by the region of the price mentioned above and the price of 69276.82. But there is a feeling that there may be an ABCDE cluster within the weekly chart and what could end the pattern we have named above.
However, Bitcoin continues to seek to strengthen wave 5, which would push prices towards new all-time highs. Along with that, it should be noted that there is already an approximation of the moving averages of the MACD; a crossing of the ATR and the ADX, with average trading volumes; and also, average lateralization of the RSI at 70 points, but with a marked stochastic trend of correction in accumulation pressure.
Under the parameters of these indicators, it is good to start setting the first alarms and calculate the stops before the next big short.
But where is the real theory that will make us make money in the next bear market? It’s simple, dear friend. We are already calculating the correction stops on the monthly chart.
With this graphical weather, we have been saying that the cryptocurrency market globally is in an Elliot wave 1, and that subsequently, as much as many theorists wanted an eternally bull market, that wave will soon see it end between the lower limit of the 159k or maybe the 300k as many want.
By the time this article was written, the premium members already had an advance analysis, which showed them exactly how far the price of Bitcoin was going to be projected and where the next stops should be placed until now.
Anyway, we want to tell you a summary. Within the parameters studied, we can say that there is a probability that the month of April Bitcoin will close with a red candle well before continuing its trajectory towards new highs.
On the one hand it is good because we will see many altcoins running base, but on the other hand it can be disastrous for institutional investors, who as we have seen, in recent days investment interest has dropped a lot.
With the above logic, we believe positively in the breaking of the high trend line that we have projected above 100k, but we can confirm that in the next wave 2 we will be buying cheap at approximately 13880.55 and exactly where the EMA50 already begins to be shown as historical support.
It is worth remembering then, that whenever a bull-run happens, the market corrects approximately between 40% and 80%. So don’t be taken by surprise. Add to that that the closest supports for now are at 33k (EMA9M1); 23k (EMA21M1); and 18k and indicated by our EMA32M1 as primary trend support.
With the above, you already have a first tool so that the next big short does not take you by surprise. It’s a good movie, but we don’t want you to experience it firsthand. Good luck!