2021 $BTC FLASHBACK? đš Is a Crash Coming Or? đ
Bitcoin is poised for a potential correction that could test soon the support S4 (50'400-52'000)! Declining trading volumes, slowing ETF inflows and historical market patterns are contributing this downtrend. In fact, after falling over 12% since late August, BTC's price is struggling to regain its momentum. September is historically a bearish month for Bitcoin, which could see a dip before a possible rally. Currently, I expect BTC to test S4. Losing that support could lead to S3 which is the most important support to monitor. If S3 can't hold, the long-term bullish structure is in serious danger! Could 2021 repeat itself?
Actually it could if we watch at the weekly EMA50! That year Bitcoin saw its price dumping to 30/33k (-40%) so if the history repeat itself and a 40% correction is ahead, then the next BTC stop is on S3. On the chart I also outlined the monthly EMA10 and the R/S5. If the weekly candle will close below the R/S5, then S5 will be the new resistance. At last, if the September monthly candle closes below the EMA10, then it will reinforce the downtrend. Also, let's not forget about MACD weekly, which heading to the signal line! According to this situation I'll adopt the following strategy:
I'll open a short position 55'000 with first take profit on S4 (50%) and second take profit on S3 (50%), stop loss on 61k. If the market goes against me, I'll open a long position on my previous stop loss (tp R1). Also, in case selling volumes won't be enough to break S4, then I may consider a long position from there. However, it will be important to track the open interest in perpetual options and ETF outflows for that potential long position. Note that this position may stays open for weeks, as I'm adopting it for a long term profit.
- Until the BTC's price will sit into the green line in the chart, the bullish trend is still valid!
STAY TUNED! đ„ & Remember, Your Support Is MASSIVELY Appreciated!đđȘ - DYOR đ NFA.đ€
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