Today for the bitcoin price and I can’t believe my eyes for bitcoin right now. I want to go into the chart and actually I wanted to take some day off, but now I have to come out, I have to talk about what’s looming in the bitcoin charts, and what is the next move for bitcoin.
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Let’s talk about the bitcoin price and this is not what I’m talking about. We talked about this inverse head and shoulders pattern before and beautiful so far. We broke out right but bitcoin needs to break above the 21 800 US dollar area give or take. But not like this small Wiki we need a lot of volume support to hit the 26 000 us dollar price target but this is not. The only thing I want to talk about. We are talking about something on a bigger scale something that almost no one is looking at. Let me quickly go back to the weekly candles before I talk about everything that’s going on here. Actually, I will talk about my trade as well trade. You can see it here approximately 180 2 000 US dollars in a profit boom. I put in like 200 000 so 86 and in a profit right now.
It’s almost 100 bitcoin trade this trade remains open people are laughing at me. People are saying you’re gonna get liquidated on that well possible. But, let’s not be too quick with these assumptions first of all, of course, with all the positivity. I’m always spreading we are still below the year 11 years resistance. Bitcoin has to get back above that on the weekly time frame. If bitcoin is not getting above that obviously we are remaining in this severely dangerous territory for bitcoin. Bitcoin needs to break above 22 322 400 us dollars to confirm this reversal basically because as this is what we did in 2020 we broke below eventually bitcoin got back above again and actually before that we never ever broke below this very important 11-year resistance right. I mean support we never broke below it and now for the first time, we are breaking below it. So, of course, we need bitcoin to close back above again. But, I wanted to talk about something else. Let me go here down to the hourly candidates because in the immediate short term. There is one thing we have to keep in mind.
Let me actually delete this line here one pattern where no one is looking at. I would call it this one here I’m bullish on bitcoin. I am in a long position on bitcoin, so don’t get me wrong on this. One thing I wanted to show you is a potential let me go back here a potential adamant Eve pattern. We are far from baking or breaking it if we break it however and this is I will tell you exactly where I would long where I would short if we break it. It could get very crazy for bitcoin, so what you can see is we have the atom or just a second we have Adam and we have eve which is the rounding pattern. So, the moment bitcoin would break let me actually delete this here the moment bitcoin would break the approximate level of 20 000 once again to the downside. This is the moment we would look at a potential price target to the downside and then it would get very hairy for my trade. Actually, I will talk about that just in a second for a potential target to the downside 18 200 US dollars going back to my trade. You can see my liquidation price is at 17 200. But that would be very close for bitcoin. It would be actually this last week many people are waiting for before bitcoin can break towards the upset. Of course, keep in mind. Let me quickly go back here and keep in mind that at the moment bitcoin is breaking 21 800. The price target is 26-26 500 US dollars respectively right now. We are in a zone that I would call undecided, right bitcoin is not decisive yet. We have to stay twenty thousand.
We have to break twenty one thousand eight hundred the moment bitcoin breaks twenty-one thousand eight hundred twenty six thousand is the price target very clear instructions here. At the moment Bitcoin is breaking the 20 000 us dollar level to the downside with the daily close with volume support. This is when we are looking for 18 200 US dollars for bitcoin. This is actually what I wanted to talk about and if you are saying now hey this looks very bearish for me. I want to jump into a short position. Be careful when bitcoin is in the red capitulation area. You can see it here in the last five years when bitcoin goes red when bitcoin goes into the red capitulation area on the entity adjusted net unrealized profit and loss ratio. We did it in 2019-18, we did it in 2020 and we are dipping in right now as we speak this, dear ladies and gentlemen is not the moment too short on bitcoin.
This is historically every single time we did that we were at the bottom or we were close to the bottom. If you are shorting right now you are exposing yourself for the last 12 years. Actually, I could scroll this higher to the last 12 years to an insane amount of risk. I am personally in this cautious long position. I might put my stop loss at a break-even. However, maybe even I’m scaling it higher. If we are breaking lower what I want to tell you is if you don’t want too long which I can understand. It’s a very risky situation right now. If you’re not experienced, I would stay away from trading anyways. But shorting is dangerous right now, so please be very careful.
This article is a transcription of a video made by MMCrypto
Original video: https://youtu.be/Z0lyOb7igVQ