Bitcoin is clearly in a topping process. The only question is how fast and how deep BTC will fall, and how it will impact altcoins. A simple question, but not simple to answer. Although our 2021 crypto forecast is very bullish we are not convinced the medium term timeframe is an easy one to handle especially because BTC looks very tired.
The medium term BTC chart is now facing a major challenge: 33,076 USD. This is the level to overcome on a weekly closing basis. As long as this level is not taken out the medium term trend in BTC is bearish.
The chart says it all, and it is the chart we have been using for many weeks in our premium crypto research service to indicate that a topping pattern right below 40k was a real option.
In other words when we wrote Bitcoin: Major Top Already Hit Or Parabolic Move Underway we had 2 topping scenarios, and the one below is one of the two. The parabolic move in the more bullish topping scenario did not materialize, and our members heard it from us long before it happened!
The historic BTC chart may be setting a top but we don’t think this is the end of secular bull market #3. The chart suggests BTC needs a break, and this process is likely going to last several months. We need lower level timeframes and a few more weeks of data to understand the exact duration of this break.
But is there only concern in the crypto market, with the charts above showing how tired BTC has become?
No, there is also opportunity. And this is what we wrote in today’s crypto alert update to our members:
After another thorough analysis of the crypto market in which we reviewed (continue to review) fundamentals and hundreds of charts we selected 6 new candidates for our top 6 list. They fall in 2 categories.
Three of them are laggards, and three of them are DeFi coins. We add them as candidates to our top 6 list, and will make a decision on which one(s) we formally add to our top coin list. We believe all 6 are worth a long term crypto investor portfolio.
An incremental approach to entering some of these newcomers is recommended. Buying a first slice on a down day, especially when BTC is selling off, is the most sane to do.
Remember, we are long term crypto investors, not traders. We look for value, and we are only satisfied with 100% to 1,000% returns. This will not come from LINK and ETH.
Don’t let yourself guide by potential frustration because you didn’t hit some of our recommended coins which turned out to be 10-baggers OR because XRP got stopped cold by the SEC right when it started its rally to 3 USD. An investor takes the wrong decisions if they are driven by emotions like greed, frustration, the need to act fast to make up for a mistake or a missed opportunity …
Yes, we guide our premium crypto members like no other service out there does. We were not in ETH, but we hit LINK / THETA / RLC as 10-baggers in 2020. And we will hit multi-baggers in 2021, that’s for sure.