Bitcoin started a breakdown this week. Especially on Friday and Saturday it was trading below its rising channel. How serious is this breakdown? Will this lead to more selling? Will we revisit 8k or even 6.6k? Were the bears on social media right to call for a major top at 10k? Not according to our Bitcoin forecast. Also our cryptocurrency predictions for 2020 forecasted something different than what you tend to read on social media from crypto gurus.
In this weekend update to our premium crypto investors we said to be very alert. We said that the 72 hours from Saturday evening to Tuesday evening are crucial.
Why 72 hours, what’s so crucial this weekend?
Well, at the risk of sounding like a broken record, we’ll repeat it again: Tsaklanos his 1/99 Investing Principles suggest it is 1% of the time in a year that the market makes decisions on a trend (up or down). This weekend is such a decisive moment for 2020. The impact will be significant: either 16k or 6k in Bitcoin, pretty different outcome.
At InvestingHaven we always apply the ‘rule of 3’ to understand markets and to conclude whether a trade is interesting or not. Based on the 3 conditions we track for the crypto market, specifically for Bitcoin, we conclude that Bitcoin will resolve to the upside. The 3 conditions include:
- Intermarket model.
- Chart model.
- Technical model.
What’s very interesting at this point in time is the chart setup as well as the technical model.
The chart can certainly be read in 2 different ways: bullish or bearish. Below is the daily Bitcoin chart, it is one of the must-see charts in this weekend’s crypto alert. However, the yellow circle on the chart has a clear message to us, and similarly important the bigger picture chart also has a message.
Even more interesting in the technical model which suggests that by Tuesday February 25th, 2020 all conditions will be in place for a powerful trend. Whether it is up or down is something we first tell our premium members, and only at a later point reveal in the public to demonstrate the quality our forecasting capabilities. We can certainly be proven wrong by the market, but the setup currently is pretty consistent between our 3 indicators.
Clearly the crypto market is trading at a cross road at this point in time. In our crypto investing service we explained a very clear viewpoint to our premium crypto members. Bitcoin is about to start a big move in the next few days. Want to read our crypto alert from Saturday Feb 22nd? Simply sign up and get instant access.