BITCOIN: The ATH Trap Is Set! (get ready) - BTC Price Prediction Today

Summary

In this video, the creator discusses the current Bitcoin market situation, analyzing potential risks and opportunities. Despite the optimism surrounding Bitcoin’s rise, they are opting to short Bitcoin due to bearish divergences observed on the RSI and MACD indicators. The video highlights the key support levels to watch, alongside liquidations and the broader market trend. While Bitcoin remains in an uptrend, the creator advises caution, especially after a significant price increase. They also share insights on altcoins like XRP and Solana, urging viewers to manage risk and consider potential market reversals.

Takeaways

• 😀 The market is currently expecting another Bitcoin pump, but the speaker is cautious and is shorting instead of longing.
• 😀 Bitcoin recently bounced 3.5% towards the top of an important ascending channel on the 1-hour chart, signaling potential resistance.
• 😀 Bullish CVD divergences were observed yesterday, indicating a possible bullish trend for Bitcoin, but the speaker is still cautious.
• 😀 Approximately $128 million in short positions were liquidated in the past 24 hours after Bitcoin reached a recent high.
• 😀 The speaker has been profitable from long positions but is adding to their short positions as a countermeasure to potential market reversals.
• 😀 Bitcoin is currently just 1.73% away from reaching a new all-time high, but the speaker remains wary of buying after such a significant push upwards.
• 😀 Indicators like RSI and MACD on the 4-hour and daily time frames show bearish divergences, which could signal a trend reversal.
• 😀 The speaker advises caution in buying Bitcoin after it has risen substantially, warning that it might be the time to think twice when the market feels too exciting.
• 😀 A key support level around $105,500 is highlighted as crucial for Bitcoin's next move. If this support level is lost, a significant reversal might be expected.
• 😀 The speaker emphasizes managing risk and taking profits, noting that even if short positions don’t work out, they will remain in profit due to successful long trades.

Q & A

Why is the trader shorting Bitcoin despite the market expecting another pump?

The trader is shorting Bitcoin because, despite the excitement around a potential all-time high, they believe it's time to think twice when the market feels overly bullish. The trader observes that Bitcoin has recently bounced upward into an important resistance area, indicating a possible reversal.

What indicators suggest that the trend might be reversing?

The trader highlights bearish divergences between Bitcoin's price and key indicators like the RSI and MACD on both the 4-hour and daily time frames. These divergences suggest that the momentum may be weakening and that the trend could reverse in the near future.

What role do liquidations play in the trader's decision to short Bitcoin?

The trader points out that a significant liquidation event occurred after Bitcoin's recent price spike, with millions of short positions getting liquidated. This suggests that the market might be overextended, and the trader sees this as a potential sign of a price reversal.

What is the trader's perspective on buying Bitcoin after a large price movement?

The trader is cautious about buying Bitcoin after such a significant upward move, stating that when it feels exciting to buy, it is often time to think twice. They emphasize the importance of waiting for a support level to form before entering a new long position.

What specific support level is the trader monitoring for Bitcoin?

The trader is watching the $105,500 support level, which they believe could determine whether Bitcoin moves towards a new all-time high. This level aligns with key technical indicators like the Fibonacci golden ratio and the anchored VWAP.

Why is the trader not buying Bitcoin at current levels?

The trader is avoiding buying Bitcoin at current levels because Bitcoin has already experienced a substantial rise, and they prefer to buy at support levels rather than after a large upward movement. They also suggest that this level is a critical decision point for the market.

How does the trader manage risk in their positions?

The trader manages risk by taking profits from long positions and holding short positions in case of a price reversal. They are prepared for both upside and downside movements and make adjustments based on key support and resistance levels.

What is the trader's stance on altcoins in the current market?

The trader is cautious about altcoins, noting that while Bitcoin is leading the market, altcoins like XRP and Solana are not performing strongly. They recommend focusing on Bitcoin and being cautious with altcoins due to Bitcoin's dominance.

What is the trader's approach to setting stop losses when entering a new position?

The trader advises setting a stop loss below key support areas when entering a long position. If the price drops below these levels, it would indicate a bearish market, and the trader would exit the position to minimize losses.

How does the trader view the potential for a new all-time high for Bitcoin?

The trader acknowledges that a new all-time high for Bitcoin is possible but emphasizes that the market is nearing a critical point. While the trend is currently upward, they caution against blindly following the crowd and advocate for careful risk management.