BITCOIN BULLS ARE BACK!!!! CPI DATA JUST HELP US BREAKING UP!!!!

Summary

The speaker discusses the impact of the Consumer Price Index (CPI) on Bitcoin's price, noting that the CPI came in at 3.6% as expected, which has led to a positive market reaction and a significant price jump for Bitcoin. They delve into technical analysis, highlighting key levels to watch, including potential resistance at $67,000 and the possibility of a short squeeze. The speaker also shares their personal trades, emphasizing the importance of risk management and a good risk-reward ratio. They mention various cryptocurrencies, including Ethereum and Solana, and discuss their potential price movements based on current market trends and technical indicators. The video concludes with an invitation for viewers to join live trading sessions on Discord and offers advice on trading platforms and strategies.

Takeaways

• 📈 The Consumer Price Index (CPI) came in at 3.6%, as expected, which was a positive event for the market and triggered a jump in Bitcoin's price.
• 🔍 Bitcoin is attempting to break above a downward sloping trend line on the weekly chart, which could lead to a massive acceleration to the upside if confirmed.
• 📊 Historical volatility index levels are currently low, not seen since March 2019, indicating a potential return of volatility to the market.
• ⚡ The CPI announcement seems to have triggered the return of volatility, and the market is moving upwards.
• 💹 The stochastic indicator on the weekly chart is forecasting a buy signal for Bitcoin, pending a weekly close to confirm.
• 📍 The Coinbase premium is showing a break above, which is another positive sign for Bitcoin's price direction.
• 🎯 The next major resistance level for Bitcoin is around $67,000, which is a key level to watch for potential retests of the $70,000 mark.
• 📊 The daily chart shows some volume increase, but more volume is needed to break the downward trend, indicating a potential rally.
• 📈 A close above $64,000 for Bitcoin on the daily chart is desired, as it represents another resistance area to overcome.
• 📉 The speaker had a trade closed due to a fast price movement, but still made a profit, demonstrating the dynamic nature of trading.
• 📝 The speaker uses a spreadsheet to track trades and provides transparency about the outcomes, including profitable and non-profitable trades.

Q & A

What was the Consumer Price Index (CPI) forecasted at, and did it meet expectations?

The CPI was forecasted at 3.6%, and it met expectations as the actual number also came in at 3.6%.

How did the CPI announcement affect Bitcoin's price?

The CPI announcement led to a positive reaction in the market, triggering a significant jump in Bitcoin's price due to it being in a massive downtrend.

What is the significance of the Bitcoin price breaking above the downward sloping trend line on the weekly chart?

If Bitcoin can close the weekly candle above the downward sloping trend line, it would break out of the trend that has been in place for nearly 7 weeks, indicating a potential for a massive acceleration to the upside.

What historical volatility levels have not been seen since March 2019?

The current levels of volatility have not been seen since March 2019, suggesting that the market is due for a return of volatility, which could lead to significant market movements.

What is the next major resistance level for Bitcoin that needs to be reclaimed to attack $70,000?

The next major resistance level for Bitcoin is around $66,000 to $67,000. Reclaiming this level would suggest a potential move towards retesting the $70,000 mark.

What is the significance of the daily close above the Coinbase premium?

A daily close above the Coinbase premium indicates that Bitcoin is ready to move back towards higher levels, such as $66,000 or $67,000, which are significant resistance areas.

What is the role of volume in breaking the downward trend in the market?

An increase in volume is necessary to break the downward trend in the market. More volume coming into the market can be a positive event for Bitcoin, potentially leading to a massive rally to the upside.

What is the potential target for the Bitcoin price if the market continues its upward momentum?

If the upward momentum continues, the potential target for the Bitcoin price is around $66,900, based on the technical analysis of the market.

What is the significance of the short squeeze mentioned in the script?

A short squeeze occurs when a rapid increase in the price of an asset forces short sellers to close their positions, leading to further price increases. In the script, it is mentioned that breaking above certain price levels could trigger short squeezes, pushing the price of Bitcoin higher.

What does the speaker suggest for a good entry point for a potential trade?

The speaker suggests waiting for the 4-hourly candle to close above a specific resistance level ($63,500 in the script) as a good entry point for a trade, with a stop loss set at a calculated level to maintain a good risk-to-reward ratio.

What is the speaker's strategy for managing trades and ensuring profitability?

The speaker emphasizes the importance of having a good risk-to-reward ratio, setting stop losses appropriately, and not over-leveraging on trades. They also mention adjusting take profit points and being prepared for both winning and losing trades as part of a statistical approach to trading.