- Long Term vs Short Term - 90%90%
- Bullish vs Bearish - 75%75%
Despite what you read online and what most people are saying on crypto twitter, Bitcoin is close to bottom and we are about to enter a period of consolidation. The sentiment has quickly turned bearish as Bitcoin fell through support at $3500 and hit as low as $3350. Large outlets such as Bloomberg started to pump out FUD articles such as this discussing the short comings of Bitcoin and crypto’s inability in general to be a hedge against draw down in stock markets.
These sort of news usually come in after major sell offs or come in the form of FOMO articles post major rallies. Eventhough, this was not as significant as the drop from $6000, the overall bearish sentiment among most investors and traders can be felt through major news outlets and social media.
What’s interesting to note is that Bitcoin is looking to close January on an inverted hammer after six straight months of decline from the highs of $7700 and declining volume. Major liquidity still lies in the sub $2800 area with possible downside as low as $2400. In no way are we calling bottom here but our sentiment is changing to “Be Ready To Fn Long”.The liquidity zone in the $2400-$2800 is entirely in play and would coincide with price action that occurred in the summer of 2017. A rally and bullish price action in the near term prior to registering new lows is a more likely possibility.
A more conservative approach would be to wait for Bitcoin prices to fall through the lows at $3150 and wait for a long opportunity around $2800. The market must hold the $2400 price level or an additional draw down of 50% becomes a real possibility and could put Bitcoin in a significant hole.
If you believe in Bitcoin and crypto in general the next few months might present a great buying opportunity. And if you still think Crypto is a scam, short this “ponzi” to ZERO.