Bitcoin – will it finally pump or dump?

07.06.2022 9:38 pm

Hello, everyone!

I am still in my long position which I entered at the $29k. Yesterday I was sure that the bounce to at least $35k started because of a number of bullish signs, but this annoying dump messed up everything. It is too boring to stay in trading range for a long time. I think that the large players want to kick the trading noobs out of the market. I demonstrated you many times that whales are accumulating long positions for the Bitcoin and cutting hedging shorts during this range.

Bitcoin in local picture

Yesterday I showed you the buy levels if you missed my entry point but the market came back to it and broke down all the Fibonacci levels without any stoppage. This is not the law of nature but I observed the same situations a lot of times. When the price broke all significant Fibonacci levels down on the local timeframe (1h, 4h), makes slightly lower low than the impulse start and stops at that level – it is usually the manipulation with the purpose to liquidate all traders who bought at the upper band of trading range. Moreover the bullish divergence formed on the 4h with the MACD histogram and line. This is rather strong signal, especially taking into account that the bullish divergence also formed on the weekly timeframe and other bullish signals which we have considered in the several last analysis. Thus, I am still believe that the price will reach my target.

Bitcoin on 1D timeframe – ugly picture

But not everything is so good if we take a look at the daily timeframe. Yesterday Bitcoin looked bullish but today’s bearish engulfing candle messed up to my signal playing out. If the BTC price will break down the trendline we can see lower low below the $26k very soon. In this case for me Bitcoin will become very bullish because of potential bullish divergence with MACD histogram enhanced with the MACD line. The most bearish scenario I pointed out on the chart below. My plan is to stay in position right now and buy more if the price will drop below $26k.

Good luck!

Fig1. The most bearish scenario
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