Bitcoin / TetherUSShort
BTCUSD - short, 1Y cycle
A year ago, 1 #BTC was worth $15,700, and we were wondering how low it could go. It didn't go lower. It has since reached a yearly high at $36,000, providing nearly a 130% return for those who caught that bottom.
We are at the end of a cycle. There have been recent Bitcoin inflows into CEXs in the last few days. There's a Bollinger Bands squeeze on the 4-hour chart and an RSI of 75% on the daily chart. We've tested the resistance for the third time and got rejected.
Throughout this cycle, it seems we've formed a rising wedge pattern. We are currently at the technical resistance of this pattern. We are also closely tied to a crucial support/resistance flip zone, marking the boundary between a Bear Market and a Bull Market.
We've had 3 weeks of sideways movement, and on the 1-hour chart, the MA233 and MA377 are hugging the support of this sideways movement. Expect volatility.
In my opinion, it's suspicious that we might repeat the fractal movement from April and July, where there was a deviation above the resistance, followed by a correction towards the support zone.
There are enough signs that this fractal movement might repeat. Gaps in Open Interest and on the CME Futures market, as well as Funding Rate changes due to market movement. Moreover, a retest of the breakout is likely.
On the liquidation heatmap, the area around $26,000 is tempting. I'm not saying we will go there directly, but if it tests $30,000 and falls below that support area, there's another liquidity zone at $28,500. If it reaches that level, I anticipate a rapid drop towards $26,500. I don't think we will stay there for long. This is more of a short-term and aggressive move.
Extreme greed is prevalent, and sentiment is very bullish on social media.
This is a moment when retail investors may become prey, providing liquidity for others.
We are at the end of a cycle. There have been recent Bitcoin inflows into CEXs in the last few days. There's a Bollinger Bands squeeze on the 4-hour chart and an RSI of 75% on the daily chart. We've tested the resistance for the third time and got rejected.
Throughout this cycle, it seems we've formed a rising wedge pattern. We are currently at the technical resistance of this pattern. We are also closely tied to a crucial support/resistance flip zone, marking the boundary between a Bear Market and a Bull Market.
We've had 3 weeks of sideways movement, and on the 1-hour chart, the MA233 and MA377 are hugging the support of this sideways movement. Expect volatility.
In my opinion, it's suspicious that we might repeat the fractal movement from April and July, where there was a deviation above the resistance, followed by a correction towards the support zone.
There are enough signs that this fractal movement might repeat. Gaps in Open Interest and on the CME Futures market, as well as Funding Rate changes due to market movement. Moreover, a retest of the breakout is likely.
On the liquidation heatmap, the area around $26,000 is tempting. I'm not saying we will go there directly, but if it tests $30,000 and falls below that support area, there's another liquidity zone at $28,500. If it reaches that level, I anticipate a rapid drop towards $26,500. I don't think we will stay there for long. This is more of a short-term and aggressive move.
Extreme greed is prevalent, and sentiment is very bullish on social media.
This is a moment when retail investors may become prey, providing liquidity for others.
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