We are looking at a repeat of May-June. Bitcoin just activated its full long-term, sideways consolidation range. When the lower end of this range is activated, support, we are very likely to see a market reaction in the inverse direction. See the green zone on the chart and from this point forward prices start rising.
There is the possibility of lower, just a bit lower. And this can happen slowly just as it can happen in a flash. It can happen. Right now though we are focusing on a swift, fast and strong recovery. That is, we are betting that there won’t be lower prices while at the same time prepared if lower does show up.
Since we keep a map of the bigger picture, a longer or stronger retrace is not a problem because we know that the market will continue to grow. Instead of going SHORT at this point, which can certainly produce a loss of focus, we wait for support and go LONG.
Since $110,000 is already a strong support zone, we are active. Right now $110,000 is obviously resistance because the action is happening below this level. There is something important to keep in mind, keep reading below.
What Bitcoin is actually doing is consolidation. You can focus on Bitcoin, track Bitcoin and lose focus of the altcoins and even while Bitcoin consolidates the altcoins continue to grow. This is my next task.
I will show you many altcoins that are going bullish right now, the last three days, sometimes more. At the time same, from this chart, you can see how Bitcoin has been moving lower since the mid-portion of this month. This disparity reveals what comes next.
A bearish move from $120,000 to $80,000, for example, would be a very strong correction bear market size. As soon as this move starts to develop, if it were happening, the altcoins would either explode into a massive bull market, or would crash that many times harder than Bitcoin. None of this is happening now.
As Bitcoin retraces within a wide range, the altcoins market continues simply to grow slowly, build up bullish momentum, and consolidate. That’s all there is and I will now show you some charts.
With all that said, know that we are clear, sure and certain that the best portion of the bull market is yet to come. It is still early, we are missing the bull run phase. Basically, the bull market is still yet to happen, we have to wait for the fireworks and after the fireworks, we have dance, drinks and food and then the bull market ends. In this analogy, we are still at the early stages. Patience is key.
Namaste.
