Bitcoin's Weakness = Your Opportunity
If you're just watching Bitcoin headlines, you probably think crypto's dead in the water.
But Sam Volkering’s Crypto Kings have crushed it - even when Bitcoin is taking it on the chin.
Investors are exiting bitcoin – sending the price lower
On 20 July, Tesla’s 41,400 coins at a cost of ($1,3 billion) are now worth $105 million less than where they purchased.
This is spooking investors out of bitcoin (and crypto-currency market) as they realise the coin is not as stable as they thought.
Already, bitcoin is down 50% from its highs of $63,000 down to $29,990 in less than one year and is below the crucial 200SMA, which I’ll talk about in a bit.
But what you need to know is these signs are all catalysts for investors to get out and so bitcoin’s price will continue its freefall.
The global market sell off seems to be coinciding with the crypto sell off
There are signs that the most current vaccine is not going to be effective for the new highly contagious Delta variant that’s taking over.
This is setting back the economic recovery efforts with investors protecting their capital by taking their money out of all major markets.
It seems like the crypto world is coinciding with the global stock market sell-off.
We’ve seen Bitcoin drop below $29,900 along with double-digit percentage losses from Ethereum, Cardano, Ripple’s XRP and even Dogecoin.
Here’s what Patrick Heusser, head of trading at Crypto Finance AG, said in an interview last Monday.
“I am expecting a strong dip towards $22K,”
Next we have Edward Moya, senior market analyst at Oanda who said:
“Wall Street is seeing, too much froth, and current virus jitters are triggering widespread panic selling of every top performing asset, with bitcoin being right at the top of this list”.
And here’s what James Royal, analyst at Bankrate.com said in an email:
"When investing in cryptocurrency, it's important to remember that volatility is the name of the game,"
So we can see, volatility and the current Delta variant could be the main reasons for bitcoins crash, wiping out almost all of the gains for 2021.
Also, more importantly, the charts agree with the major downside to come for bitcoin. After this, you will not be able to unsee this bitcoin crash to come.
Why bitcoin could drop over 42%…
You’re looking at the daily chart of bitcoin.
Since 3 January 2020, it started forming a large and powerful reverse breakout pattern called a Head and Shoulders (Shaded area).
This is a formation that has a left shoulder (small rounding top) a head (big rounding top) and a right shoulder (small rounding top).
It also has kept bouncing on a solid support (floor level) at the price level of 31,413.
That was until two price action factors occurred.
First, the price moved below the 200SMA (Simple Moving Average). The 200 SMA is an important indicator that determines whether a market is in a bull (up) or bear (down) trend. The fact that the price is below it, indicates it’s in a downtrend market.
Second, the price broke below the support line (black line) last week. This tells us the bears (sellers) are winning and that the market is in free fall.
To determine where the first price target will be, we will watch the next major support level.
Which in this case is at 17,944.
And like I said, this is a start. When it touches this price, it could fall even further. But I’ll be sure to alert you when this happens.
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Here’s how you can profit from the next 42% Bitcoin crash
First, I’ll look to short (sell) Bitcoin CFDs through a broker like Rand Swiss using Velocity Trader and will hold the position until it hits my price target.
Chief Strategist, Red Hot Storm Trader