Greetings and I hope everyone is enjoying the new year!
With all the optimism i keep seeing over the past couple days when it comes to bitcoin, I would like to bring attention to the possibility of a massive short that might be happening within a couple days.( I still believe that bitcoin will go to 50,000 this year so this is a prime buying time).
It seems like yesterday. The bull seemed like it would never run out of energy. December 8th we hit highs of $18,000!!
Many people were excited about the entry of financial institutions into bitcoin trading.
If you were an investor on Dec 10th buying your first future contract, would you in your right mind buy at that price! NO!!
This would explain the extended correction that we have been having for weeks now!! Bitcoin just seems like its being pushed down intentionally!
Jan 13th is the date that first set of contracts finish and I still expect a decline to that date.
I have labelled 3 spots where you might be able to buy. The main problem Ive had for the past couple of weeks was trying to understand what type of correction we were going through. It seems like to be A WXY structure, so be on the lookout where the Y is leg is going to!
Lastly, I would like to see our RSI drop a little bit lower. From the daily we aren't doing terrible, but if you go up on higher time frames, you might have nightmares for days!!
So to conclude, do not view this post as negative. These are perfect opportunities for people who haven't bought or have been waiting on a good opportunity to make their first purchase.
Cheers
Sebastian
Full chart at https://www.tradingview.com/chart/BTCUSD/wOkiomCz-BItcoin-and-futures/