Good evening gang…
As usual, Bitcoin aint getting up to much…When the weekends arrive and not much happens, ususally means we are going to see a very interesting move about to unfold.
So I will keep this short…
Two scenarios are coming to my mind:
First scenario:
What if Bitcoin breaks above the 4-hour 50 ema cloud?
Let’s consider the logic…
Two attempts at breaking down lower have failed and bitcoin has held very well.
We have the violet vector candle above which is the next zone of interest in Bitcoin that I expect it to take in the form of a stop run.
If they can succeed above the POC (point of control red line) then we would assume this area as support and the projection that I have drawn is going to take us into the next week.
There are vectors close by above the 4h 50 ema cloud that suggest they can get above the 50 ema cloud then they will run stops towards those zones and reverse from there each time they take a vector zone.
Now I want you to take this concept i am about to introduce and have somewhat critical thinking behind it…
Sp 500 has been moving up aggressively, alongside Nasdaq, yet Bitcoin has not done any of that and has been dropping…
Is sp 500 giving us the clue that Bitcoin is about to move up aggressively going into next week?
Is the Sp500 rise, on the premises that the US gov is going to resolve the US debt ceiling…?
Remember if they raise the debt ceiling, this is good short-term for financial markets as the markets will see this as an opportunity by the Government to stabilize the markets, any cash the government puts into the economy, the markets welcome it, it can encourage companies to employ people, which means money is circulating…
But what if Bitcoin is giving us the heads up that things are not looking good and that sp 500 is simply a short squeeze and the debt ceiling story is going to cause a mad drop in price and Bitcoin has already started it?
Now second scenario..
Refer to the hyblock images…
One zone on the 7 day chart is screaming “Hey i would like to be will smithed like no tomorrow”
As long as they hold the 4h 50 ema then i would expect Bitcoin to take out that liquidity which sits at 27800
However, if you look at the 12-hour chart, it paints a different picture….
Can we assume that bitcoin will go towards the zones highlighted in the 12 hr hyblock chart first?
This would be consistent with the price coming back into the wicks on the 8hr time frame as shown above?
This week is going to be driven with the decision that the congress is going to reveal regarding the US debt ceiling….
The second the word default comes out….There is nothing that will keep any market up…everything will collapse…
So to finalise:
If bitcoin can succeed and get above the 4hr 50 ema cloud, then we project a return towards the 27800 zone as vectors near by will help with the move up.
Second scenario: If bitcoin still struggles to get above the 4hr 50 ema cloud, ( remember, price has to get above the 50 eam cloud, go back into it and act as support) …Big vectors above the cloud are not signals to go long, until they are tested and the green vector candle continuation play holds that break of the 50…
I will be reviewing bitcoin again and tomorrow I will have the FX update and the indices…
Mad Love
T
