BTC Set Up: Head & Shoulder and a Descending Triangle Pattern
2024-12-31
Category: None

Beginner->Intermediate Level Analysis 
The crypto market is experiencing consolidation as the King of Crypto takes a breather after its most recent run up. A head and shoulders pattern (White Trendline's) and a Descending Triangle pattern (Yellow Trendline's) shown here on the daily chart, are displayed with their relatively equivalent upside and downside targets marked by a Bear to the downside and a Bull to the upside. While the head and shoulders pattern is typically a bearish pattern, with the distance of the neckline providing the technical target, the descending triangle has slightly better odds of breaking back (busted triangle).  Either way we slice it, chances are leaning toward a shake out, which I provide some insight on toward the last half of this idea. While the technical targets of these patterns warn of potential downside, it is important to note that the majority of selling pressure has already occurred and the buying pressure in and around 80k-90k will be fierce, intended to shake out 'paper hands' who quickly forfeit their Bitcoin just shy of the most important parabolic stages of the bull run. Regrettably, it is these shakeouts that actually provide the fuel for such a run up  
 Who is Selling? 
Bitcoin (BTC) has faced selling pressure from retail shrimps and worrisome dolphins as Shark and Whale activity (e.g., enterprise and institutional buying, respectively) remains primarily invisible and providing no immediate benefit to the overall market. However, shrimple retail investors are smartening up to the complex movements of big fish gamers, market makers, and pesky shark players, particularly the predatory antics that control market demand for an asset by causing sharp movements in price which instill fear or exuberance in market participants. Yet, for those new to the game, its helpful to understand how big market movers fool the rest of the market. 
Strategy Reveal: The Ol' Mississippi OkeeDoke followed by an Alabama Slew Slammer
This takes place when big whales and sharks cloak their real movements by making purchases and sales "over the counter (OTC)". There is a benefit to OTC trades, it lowers the frequency of market swings for every big purchase or sale. Yet, switching back and forth between OTC and exchange transactions can provide the perfect cover and an opportunity for moving markets when needed. On top of this, Market Makers are in a cat and mouse game with leverage traders, causing steep movements in both directions.  
 However, there does come a point when a supply shock is unavoidable and all that buying causes real asset scarcity. This is a Supply Shock, and the BTC market is quickly approaching this type of market environment. And so goes the crypto (and equity) market. Yet, retail shrimps and aspiring dolphins would benefit from continued accumulation on market dips --avoiding selling out of fear during market shakeouts like this.  Hold tight, we are going for a roller coaster ride! Good luck everyone! 