Bitcoin and the Bears
And the Future of Meme Coins
Hey and welcome to the network! What a crazy week it’s been in the market. It seems the market at large is experiencing massive amounts of volatility as price swings shake out and liquidate positions.
If you have survived the drop . . . CONGRATULATIONS! Many trading experts predicted this drop down to the 32000 level as the final stage of the Wycoff distribution. They made money shorting the market and have bought back in at this level.
These types of drops are not unusual and often healthy for the market. The liquidation of positions have allowed institutional investors the supply needed to enter into the market. Unfourtunatley it was the average Joe retail investors that are taking the biggest hit. I’m talking about the people who bought ETH at 4000 and sold at its low.
Remember you don’t lose anything until you sell. Take a look at Bitcoins history and the drops from the all time high. Even though there is massive volatility holding onto your bitcoin is still the best idea.
Beginning of a Bear Market
When looking at the price of bitcoin one must take a macro perspective and observe historical patterns in the chart. In previous bull runs Bitcoin has managed to stay above the 20 week EMA. Historically anytime the weekly charts closed under this level it has shown that a reversal is imminent and the Bears are taking over.
Wyckoff Distribution
The Wyckoff accumulation and distribution reversal pattern is an old textbook pattern that signals high amounts of market manipulation. It is a bearish pattern designed to push prices lower. Bitcoin has been following this pattern to a T.
What Can we Do in the Short Term?
In the short term we can expect prices to continue to fall until the market consolidates at the floor. In the immediate short term I have opened up short positions on BTC to take advantage of this move down.
Future of Meme Coins
I would start to consider selling altcoins for bitcoin as these coins may move down even further. All the crazy all time highs created by new alt coins have a part in the bubble prices and eventual market crash. Now would be a serious time to look at your alts and consider moving them to bitcoin before any massive price drops or rug pulls.
I hope my readers found this helpful and as always thanks for reading. For technical analysis and to follow this bear market please join the conversation at
https://www.facebook.com/groups/2719098648389567/?ref=share
- Josef S Loffler
