Today for the Bitcoin price and, honestly, what the heck is happening to Bitcoin I just had a few-hour ride through the mountains without internet. I came here and I opened the charts and I’m like what the heck I mean.
Let me quickly close it on Twitter just like a few seconds ago. I have no words for this Bitcoin had an amazing breakout right. We went higher and even formed this both like. You can see it better on the hourly candles and then just out of nothing boom back down again and the question is when is this finally going to end. When is Bitcoin finally going to go towards the moon mission? We are all waiting.
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Let’s talk about that. Let’s talk about what is happening for Bitcoin right now? And I myself am a little bit disappointed because yesterday, of course, we had the fat news, we had the price breaking out. We had volume behind everything that looked good. Once again back down not only below the first resistance also below. The second resistance and, of course, we have to ask ourselves what the heck is going on here. Well, we can see that the Bitcoin price broke out from this falling wedge and the price target was, actually, all the way up here at 42 400. I can say I was wrong at the moment because of this.
If you had asked me just like 20 hours ago, I would have said “Yes” now and for the short term. I’m more bullish than bearish. I was wrong about that and the reason for that is that Bitcoin is just fooling us, really like giving us, like all the perfect signals. We have new spec events, we have a breakout, we have the breakout from this pattern, a nice confirmation break above the previous rejection point. We even have the volume coming in. You can see it right there right here I mean the first volume candle. The downwards volume candle is even crazier, of course, and now the question is what is happening here. Well, first of all, nothing is going to happen until Bitcoin is not breaking back above this new resistance.
We are below this and support them right now into resistance. This is not looking the best, if I am going over to this one here because everyone is probably asking you: Well, what does it mean for Bitcoin? What is now the worst-case scenario? What is the best-case scenario? What can we expect from Bitcoin? Well, let me quickly go back and see which chart I can best pull out for this one here that is the best one. And what you can see is my worst-case scenario is actually among these areas. I mean I’m still not expecting Bitcoin to go to these areas. But as I always said my worst case scenario is and will always remain to be 28.6-29. Let’s call it 29 000-231-32 000 US dollars for Bitcoin. As this is also the previous bottom, we had right here where I also said this is my worst-case scenario and, of course, very similar price pattern behavior here. In the last cycle where we were.
Let me quickly go back here also floating around with the triple bottom just like this time here potentially between 2017 and 2020. The year 2020 is over three years, so the question is the same thing here happening. Once again this time who knows there’s, however, one hope one good news on the horizon. I wanna show you. Let me go here into it and there is no mm crypto episode without at least some positivity all right so let’s go over here and let’s find the S P X right. Where is it D X Y perfect? So, here is the U.S dollar index right. The US dollar index. Let me go over to the weekly, the US dollar index is showing some very interesting signs because what you can see here is how strong is the US dollar compared to other currencies right. What you can see is whenever the US dollar is getting stronger. So, this chart going up means the US dollar is getting stronger.
This is when Bitcoin declines; this is 2014-2015. It’s the bear market for Bitcoin whenever we are hitting the top that’s the beginning of a big run the US dollar weakens and Bitcoin goes up same thing here US dollar going up Bitcoin down, US dollar going down Bitcoin up US dollar going up Bitcoin down. You can see here right now, that the US dollar is actually breaking the top right. I mean the US dollar is going higher and higher but there is only that much time it can go higher so if we are going now wait for a second and compare it with the new price scale with the Bitcoin chart. Then you can see something very interesting unfolding the orange line here – is the Bitcoin chart right.
Let me quickly close this so what you can see is every time the US dollar goes up Bitcoin actually stays flat or goes down. Whenever we are hitting the top on the US dollar. So, approximately, a value of 103 204 on the DXY the US dollar index is the beginning Bitcoin starts to pump. You can see the same thing here: US dollar strengthening Bitcoin weakening US dollar, weakening Bitcoin strengthening and right now, of course, the US seller was strengthening. While the Bitcoin price was weakening the question is now that we are hitting this magical level here. Once again on the DXY is this the moment for Bitcoin to shine. Well, maybe, of course, time will tell. We have to wait and give it a little bit of time. I was on the verge yesterday of working today to open a trade. I came home and I’m actually happy that I didn’t because Bitcoin just directed everything here. Just like the stock market got wrecked and everything, it really seems like the Fed is kind of losing control right now. Maybe not. Who knows.
This article is a transcription of a video made by MMCrypto
Original video: https://youtu.be/f-6W_ms2rLQ