As many of you observed, the Bitcoin price usually as of 2021 always makes a quick 2-6 hour dump, then just pulls back up. This pullback is really different... ♪ oh no ♪
Recently, we can see in the chart price making a near 2-week low. It also contested the very strong green line that held 2 scary pullbacks. Well, this pullback is very different. Although at first glance the bear dump is weak because of low volume, it is very strong when we closely analyze the chart.
The dump's volume was strong compared to the minor pullbacks in the yellow highlights in the chart. Also, volume reached a 9-day high, from the last pullback from 42k.
The Moving Average Channel composed of 200MA of the high and low has also been decisively broken! This channel prevented the pullbacks of January 11 and January 4 from going past it. But the recent dump broke it with ease. To verify the breakdown, price had a pullback to the channel, and the bears won. The channel also explained why the previous dumps in yellow highlight barely broke the channel.
This dump is also more powerful because of a prior consolidation, a symmetric triangle. A yellow dump (which I mean by the yellow in the volume heatmap) in a consolidation catches more attention.
In the Effective Divergence Indicator that I made, the purple support/resistance line in the chart is now a resistance, as there was an attempted pullback which failed.
Lastly, I would also like to point out that there is a bearish channel forming, made by the orange and red lines in the chart. This bearish channel is strong until it is broken. Get ready for a slow but steady dump in Bitcoin.
Get ready! It is coming! The dump will start. Many bearish signs give us confidence that a dump is starting. Good luck!
What do you think? Leave a comment below! Also smash that like button and change that "Follow" to "Following". Thank you! Cheers!
Recently, we can see in the chart price making a near 2-week low. It also contested the very strong green line that held 2 scary pullbacks. Well, this pullback is very different. Although at first glance the bear dump is weak because of low volume, it is very strong when we closely analyze the chart.
The dump's volume was strong compared to the minor pullbacks in the yellow highlights in the chart. Also, volume reached a 9-day high, from the last pullback from 42k.
The Moving Average Channel composed of 200MA of the high and low has also been decisively broken! This channel prevented the pullbacks of January 11 and January 4 from going past it. But the recent dump broke it with ease. To verify the breakdown, price had a pullback to the channel, and the bears won. The channel also explained why the previous dumps in yellow highlight barely broke the channel.
This dump is also more powerful because of a prior consolidation, a symmetric triangle. A yellow dump (which I mean by the yellow in the volume heatmap) in a consolidation catches more attention.
In the Effective Divergence Indicator that I made, the purple support/resistance line in the chart is now a resistance, as there was an attempted pullback which failed.
Lastly, I would also like to point out that there is a bearish channel forming, made by the orange and red lines in the chart. This bearish channel is strong until it is broken. Get ready for a slow but steady dump in Bitcoin.
Get ready! It is coming! The dump will start. Many bearish signs give us confidence that a dump is starting. Good luck!
What do you think? Leave a comment below! Also smash that like button and change that "Follow" to "Following". Thank you! Cheers!
