Are you caught up in the recent Bitcoin ($BTC) price surge, or are you still waiting for the $55K zone like us? Today, we'll explain in simple terms why we're anticipating a price drop despite the bullish sentiment from many others. Here are five reasons why we're bearish
1. **Technical Analysis**
2. **Liquidity**
3. **Powell's Speech**
4. **MTGOX Repayment**
5. **Market Psychology**
Technical Analysis, Liquidity, and Market Psychology Combined:**
While the chart shows a bullish breakout, a closer look reveals that Bitcoin's price has been rejected three times at the $61,700 level. This suggests a high probability of a downward move to capture liquidity at lower levels. There's over $500 million in liquidity at the $56K zone. Many traders might have gotten trapped after the breakout, but we believe it's necessary to wait for a 1-day close above $62,800 (our invalidation point) before turning bullish. Until then, we're bearish and will wait for these levels to enter:
You can allocate 40% of your funds to each entry point.
**Powell's Speech and MTGOX Repayments:**
Yesterday, Powell's speech made many traders bullish as he hinted at a possible rate cut in September. However, we believe this could be a trap set by the whales. Additionally, MTGOX has resumed repayments to creditors, which could create further selling pressure.
**Theme of the post:** We believe BTC will move downward to $55,300.
