Spot on! šÆ Price action over headlines every time. Geopolitics are usually priced in, but systemic shifts are the real deal. Thanks for the clarity!
Bluechip
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When I say Bitcoin could crash, I donāt mean a one-day violent drop like October 10
That kind of move is a market malfunction and has never represented a true crypto crash historically. AĀ crashĀ means several consecutive days of selling aĀ Black SwanĀ event. For example: The October 10 drop was normal and healthy for Bitcoin, Ethereum, Solana, and any solid coin.But the drop fromĀ $48K to $25K in 2022Ā tookĀ three weeksĀ because it was a real Black Swan (rate hikes + quantitative tightening). A Bitcoin crash requires a Black Swan. It wonāt be caused by an Iran strike, that kind of event is not big enough. A true systemic trigger would be something likeĀ Japanese bonds, and it would hitĀ all markets, not just crypto. Even then, it might be avoided, as Japan is currently trying to manage the situation with U.S. support. If an Iran strike happens, it would likely cause a dropĀ without breaking $80K, probably towardĀ $82Kā$84K. For a Black Swan, you need something massive, not just geopolitical headlines. Even Russia invading Ukraine only dropped Bitcoin fromĀ $42K to $34K, without breaking the prior $32K low, and price later rallied toĀ $48KĀ for a lower high. Thatās because wars are usuallyĀ priced in, and news-driven moves areĀ 90% trapsĀ (fake moves). The same applies to Fed news, the market usually prices expectations beforehand. In 2022, after Bitcoin reachedĀ $48K, it dropped naturally without negative news because the entire move up was distribution. Thatās similar to now: Current bear flag:Ā $80Kā$97K2022 bear flag:Ā $32Kā$48K So if history repeats: An Iran event could give a bottom atĀ $82Kā$84KThen a bounce toĀ $92Kā$93KFollowed by a parachute drop breakingĀ $74K Could we also see a move toward theĀ 50-week moving averageĀ with a fake breakout like 2022 (e.g. price reachingĀ $100KĀ first)? Yes, that scenario is also possible. Thatās why my current personal analysis shown in the January Bitcoin updates and the private channel across multiple charts points to aĀ violent bearish path, with clearĀ activation levelsĀ andĀ invalidation levels. If Bitcoin bounces fromĀ $84KĀ with strong candles and high momentum and breaksĀ $93K, then this analysis fails and the market must be reassessed: Maybe it tops nearĀ $100KĀ and then dropsOr maybe the bottom was already made Momentum is everything. A slow, lazy move up (like now) towardĀ $93KĀ = corrective rallyA sharpĀ V-shaped recoveryĀ breaking all resistances = real bullish move, meaning the bottom was already in atĀ $80K on Nov 21 If a breakdown belowĀ $74KĀ happens, it will be obvious early. Youāll see social media analysts talking about āmany supports belowā and calling it a correction, while Bitcoin keeps falling nonstop. Most likely, youāll also see aĀ weekly doji candleĀ before that drop. Donāt ask me for distant future paths, Iām not claiming to know the unseen. I read the marketĀ as it prints on the chart, and when it does, I call it with ~90% accuracy, just like: The September topThe $97K top in early January Iām fully convinced that any school of analysis that predicts far-ahead paths has aĀ much higher failure rateĀ than pureĀ price action, which is far more precise. When I say āweāre going to price X,ā donāt ask whether it will break or not. Price action at level X is what answers everything. The battle between bulls and bears is written in price action and it can be analyzed, just like collisions between cars or ships are studied to understand impact and outcomes.