Dec '24 (edited) • 🚀 Cryptocurrencies
Bitcoin Pause and Potential Downside
Alright guys,
I am incredibly bullish on Bitcoin for the coming 12 months. With that said, I would be a fool to not point out the warning signs that are starting to pop up. So with that said here are a few of the bearish signals showing we could have peaked for the next month or so.
- Hitting High time frame upper resistance (img 1)
- Bumped the 1.0 Fib extension level from the bottom of the market to the previous pivot low (img 2)
- RSI is overbought on the Weekly (img 3)
- We just had a bearish hammer candle on the daily, that could turn into a weekly bearish hammer candle (img 4 and 5)
This doesn't mean the bull market is over and we are going down forever. I am just bringing these things up as they are things to be aware of as we trade.
The overall thesis remains that the next year will be incredibly bullish, but the short term looks a little iffy.
BUT in times like these it is good to keep an eye out for names that are showing strength regardless of what Bitcoin is doing. Many ALTs are losing against Bitcoin, but a few are standing out (ex: $FART, AIOZ, SUPER - although now experiencing a pull back so we'll see how it develops.)
Many of the coins are at support levels like FET and BONK that will either hold and prove to be a good entry point, or break and go to the next low. These are the kinds of things you want to look for as you think through your own personal strategy.
No one likes to look at the blood in the market, but the smartest traders are the most active now waiting to buy these lows and/or are already dollar cost averaging into their positions.
Remember, have a plan and trade your plan.
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Bitcoin Pause and Potential Downside
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