This week Bitcoin has sold off so where is the BTC price going? I’ve read articles that have predicted that it is going to $100,000 eventually. Maybe someday it will do that but in the meantime it still has to work some things out before it can think about getting over $20k again.
But this drop in just about all of the major cryptocurrencies this week is not new or something that took us by surprise. In this post I did about Bitcoin, Litecoin, and Ethereum, I showed how the charts are saying that we were in for more downside for the BTC price: https://evancarthey.com/ethereum-price-prediction-with-bitcoin-and-litecoin-for-the-week-of-9-8-2019/
So when the price of Bitcoin was around $10,500 I showed from the link above that we should expect more downside to Bitcoin. Even though the price dropped a bunch this week the move to the downside isn’t over. We still have some more room to go.
I’ll explain in the charts and video below for the levels we need to look for. But the good news is the move to the downside is close to being over. We have also entered into a long setup.
So this move down is a good thing because we have to complete this short setup if Bitcoin is truly going to go north of $20,000 again.
BTC Price News
The news from CNBC that I want to go over real quick is the yellow highlighted article. Bitcoin nosedives 22% this week to its lowest level since June.
The cryptocurrency — known for its volatility — had been relatively stable since August, trading in the $10,000 range until this week. The sharp drop below $8,000 began Monday and continued to sell off throughout the trading week. Other major cryptocurrencies ether and XRP are down 24% and 19% for the week, respectively.
As is often the case in cryptocurrency markets, analysts were unable to point to one specific catalyst for the price drop.
One theory investors pointed to was a lackluster debut of a new bitcoin futures product. On Sunday, the Intercontinental Exchange, parent company of the New York Stock Exchange, launched its futures contracts on a platform called Bakkt as a way to usher in new bitcoin investors who may have been cautious about trading on exchanges.
Michael Moro, CEO of Genesis Trading, said there was a “sell the news” effect after the Bakkt launch — especially after what was “perceived as a low-volume launch,” he said.
“Anticipation for Bakkt was really high in Asia, and fairly or unfairly, the launch was counted on as a positive price catalyst,” Moro said.
Blaming the cryptocurrency moves on the debut of a new bitcoin futures product is just asinine. If you have read any of my other posts you will know I am a staunch believer that the news is just cover for the market makers (institutions and big banks) to move the markets and position themselves the way they want to be.
The truest sentence is the one about how analysts were unable to point to one specific catalyst for the price drop. For this article, they should have stopped there. But they didn’t.
They received a ridiculous quote about how the Bakkt launch was a failure so the cryptocurrency market sold off. Who actually believes this crap?
The crypto market sold off because the big players were major sellers. But that started around the $14,000 level. Most of them are probably already out of their positions and are letting the retail trader/investor push it down more. Then once the price gets to the levels they want they will get back in and drive it up. Then sell it at the high and get back in after another big drop.
Rinse and repeat.
Charts
This chart is using the daily time frame. You will see there are not any trend lines here because the main trend-line was already broken awhile ago so it isn’t relevant anymore.
From the chart, you can see how the BTC price has had nothing but red down bars the past week or so. If you are currently long Bitcoin and are hating life I understand. But I wouldn’t sell here.
The reason why is because the exit for this short setup is almost here. It is at $7,285. Once the price hits it then this short setup is over.
Now, this does not mean that the price couldn’t continue to go lower. But it means that this short setup that was a big one is now complete.
This is very important to complete in order for Bitcoin to truly rise. If it is going to rise and get back up above $20k someday then we had to have this short setup complete. At this rate, we should be there sometime next week if the downward momentum continues.
Finally, a long setup! Bitcoin has created a long setup this week that is currently live. The current exit is the top of the yellow box that is around $10790.
But if the price goes down and hits the 100% Fibonacci retracement line at $7429 then the exit moves to just below the 78.6% level at around $8800.
That is the last time the exit will move. So at this point in time, this is a “free trade.” What I mean by that is since the current price is under the lowest possible exit level then any price under the exit level is “free money.” It obviously isn’t “free” but when you exit (if you stick to the exits from this setup) then you will be in profit as long as you get in under $8,880 or so.
Video for the BTC Price
Since the video doesn’t load in the newsletter then please click on this sentence to be taken to it.
Conclusion
For the longterm of the BTC price, I am bullish. But I have been bearish in the short to intermediate-term due to the big short setup that needed to get filled.
If you have been looking to get into Bitcoin because you believe in the long term potential of it then I would wait until around $7,285. Even then I would only but a little because if the price keeps on moving down then you’ll want to keep adding to your position.
The good news is the major short setup is almost complete. A long setup is now live as well. So if we see another big move down this week then I am definitely looking to get in. I already purchased some Dogecoin and Litecoin during their sell-offs.
Hopefully, Bitcoin continues to go down this week because that would make for an amazing buying opportunity.
So don’t listen to the news the media pushes as to why the price goes up or down. It is just noise. The market is made by the people with money so start meditating to tap into your subconscious so you can discover the trading setups that work for you.
Once you do that then you will have started the process of changing your life and taking yourself to amazing new heights.
