Bitcoin is hesitating. And we believe that the crypto market, led by Bitcoin, are about to start a new trend: higher or lower. The highest probability: a dramatic move lower. It is mandatory to *always* (ALWAYS) look at a market from 2 perspectives: the bearish side and the bullish side. We outline the bullish side in this article with the current chart, and explain what might happen in case the bearish scenario unfolds. Crypto exceeded our crypto predictions 2021, so in a way it’s really time for this market to take a break.
This is what we wrote one week ago in Bitcoin’s Parabolic Rise Just Started Or About To End?
What we do know from history books is this:
- Most investors get into a market during the parabolic run.
- Most investors are so focused on the upside …
- … that they forget to take care of their downside protection.
- And most investors tend to get stuck with their coins or stocks because they miss the exit.
We are crypto bulls, but no perma bulls nor perma bears. We are realistic, and we have learnt from history books and from our own mistakes.
If anything, BTC and the crypto market feels incredibly good right now if you are invested in it. It also feels incredibly good if you are entering right now.
The week before we said this Bitcoin Flirting With 50k: Will It Crush It Or Set An Epic Top?
What does this most bullish chart pattern suggest? BTC has a first target between 71 and 76k, and the most bullish one around 140k. We are not saying that BTC will meet all these targets! We are saying that those are the most obvious turning points.
Moreover, we cannot exclude that 50k will be this magic number that the market cannot overcome. There is no resistance at 50k as per our charts, but there is a potential imaginary resistance level in the minds of investors (and shorters). So better be careful to spot a potential trend change around 50k, and certainly don’t initiate new positions at this point in time as it’s too late in the bullish cycle.
And this quote says it all:
But don’t forget to take profits in time. Don’t forget the exit. As the music will stop playing at a certain point in time. Maybe not tomorrow, maybe not the day after … but in a few weeks probably, where the million dollar question is ‘how many weeks exactly’.
If anything, InvestingHaven, editor of the First Crypto Investing Service In The World has been very accurate in guiding its members on the way higher … but also in taking profits! Even in the public domain we have been revealing high level insights from our work, entirely for free, even though those insights have appeared to be amazingly valuable. All for free, top quality … and the value will become clear to those that were (are) able to lock in profits in case our bearish projection comes true.
The BTC chart as it currently stands *may* set a bullish reversal, as per the yellow rounded reversal on below chart.
However, this is the problem: if (a big IF) it doesn’t happen, the decline will be dramatic. That’s because of this: as BTC moves to the lower area of this rounded reversal it *may* potentially not hold … if so, the subsequent red candle will be large, and probably push BTC back to 38.8k USD. Try to imagine what the pattern will look like, and focus on the pattern that might appear on this chart since the first week of February (the large green candle). See it?
We are not saying it *will*, we are saying it’s the highest probability outcome for as long as BTC is vulernable. We would say this: as long as the bullish case isn’t validated (a strong rise above 50k) the bearish outcome is the most likely one because of the vulnerability of Bitcoin’s chart setup.
March 4th, 2021 is the date! By then, we’ll know whether the bullish or bearish scenario will materialize. Better have your plan in place for the 2 scenarios, so you only have to execute as per the market’s price action. Because thinking when a market is trending are two activities that don’t go together, because emotions take over control. That’s how humans work, that’s how the human nature is not helping maximize profits when markets are working.
