BTC Power Law Analysis: Massive Crash as Expected, What’s Next?
I have been speculating for a while that bitcoin might have to correct some more before resuming its bull market trend to the next market cycle peak. In fact, I suggested in my latest market update video that we might be finally getting the dump just 2 hours before the more than 15% crash happened.
Now, what will happen next? Well, the value proposition of bitcoin is starting to get better, and people who managed to snag some BTC at 49k have a pretty nice profit potential of more than 4x if our current projection for the next top remains true. Bitcoin got a pretty strong rebound, and both the daily and weekly charts show strong demand wicks to the downside. In addition, we got some strong selling volume, indicating potential capitulation. Bear in mind that some of the previous downtrends had several such spikes. We are currently quite a bit higher than the previous bottom and ranging at a level seen multiple times over the past few months. The concerning factor is that this previous support area might be turning into resistance. Therefore, we are not out of the woods just yet.
We can also see how the local Hurst exponent is finally starting to reverse, as speculated in my previous market update video. We have now entered the dark yellow range, and judging by previous downturns after overbought areas, we have usually continued dropping until reaching a shade of green.
What bitcoin needs to do to get bullish is to start establishing a series of higher highs and higher lows again. Until then, the trend is your friend. Anything in the 40s is an amazing value proposition for me personally, and even if we were to drop to the 30s, that would be insanely good value—the type of buying opportunity you would be kicking yourself over later for not taking advantage of it. Also, that is still within the bounds of our main power law support area. My advice would be to not get married to a particular level. Personally, I am planning to accumulate at various levels to ensure a good average entry.
See you in a future update!
Now, what will happen next? Well, the value proposition of bitcoin is starting to get better, and people who managed to snag some BTC at 49k have a pretty nice profit potential of more than 4x if our current projection for the next top remains true. Bitcoin got a pretty strong rebound, and both the daily and weekly charts show strong demand wicks to the downside. In addition, we got some strong selling volume, indicating potential capitulation. Bear in mind that some of the previous downtrends had several such spikes. We are currently quite a bit higher than the previous bottom and ranging at a level seen multiple times over the past few months. The concerning factor is that this previous support area might be turning into resistance. Therefore, we are not out of the woods just yet.
We can also see how the local Hurst exponent is finally starting to reverse, as speculated in my previous market update video. We have now entered the dark yellow range, and judging by previous downturns after overbought areas, we have usually continued dropping until reaching a shade of green.
What bitcoin needs to do to get bullish is to start establishing a series of higher highs and higher lows again. Until then, the trend is your friend. Anything in the 40s is an amazing value proposition for me personally, and even if we were to drop to the 30s, that would be insanely good value—the type of buying opportunity you would be kicking yourself over later for not taking advantage of it. Also, that is still within the bounds of our main power law support area. My advice would be to not get married to a particular level. Personally, I am planning to accumulate at various levels to ensure a good average entry.
See you in a future update!
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