BTC: Only Three Possible Scenarios - Fundamentals & Technicals

Bitcoin only has three possible scenarios and needs a lot of momentum at these levels in order to make sure we get through the HEAVY resistance zone. But with our evidence gathered up, we feel like Bitcoin can be falling for lower levels, which isn't an entirely bad thing!

Fundamental & Technical Reasonings:

1. Bitcoin is currently showing no strength in the general public (Google trends), and it may be implying that the only thing that is keeping the price up is through recycled money and price manipulation. This is a fair and sound judgment from a lot of of the bears. Why? The fundamental reasoning behind this is the notion of the liquidity theory where many short sellers are looking to maximize their position as much as possible. This has been seen time after time in Bitcoin's recent price history with the introduction of leveraged markets back from the blowoff top in 2018.

2. We just witnessed a large bearish divergence with no follow up volume on the daily, and we are also breaking down from a small rising wedge. We are now looking at a larger rising wedge from the run up from March.

3. Another reason for why a pullback may be necessary is for bulls to gain more liquidity traction and buying order (consolidation) for the general public to buy in. The whole point of an accumulation phase is for buyers to regain their confidence at key support levels.

4. A short term bearish drop would indicate that we would be filling KEY support areas such as:

a. the CME gap we have mentioned numerous times,
b. golden pocket fib level 618 at sub 9K-10K levels.
c. a retest of minor support at 786 fib level.

We hope this brings a bit more judgment to your trades, as we don't want to be too euphoric about the current price action. We all want to see 12-14K break and reach new highs!

Trade Safe.

X Force.