Popular Bitcoin BTC/USD trader Stockmoney Lizards went viral with an “unbiased analysis” of potential upcoming Bitcoin price action.
What Happened: In a thread on X (formerly Twitter), the trader’s analysis takes into account the chart patterns of Bitcoin.
While there are bullish factors, such as Bitcoin rallying after the first touch of the old peak and also after halving, the current chart pattern follows a classic Wyckoff distribution. This suggests a potential corrective move downwards, fueled by more negative news, leading to a mid-term bearish conclusion.
Other factors, such as a triple top pattern, decreasing momentum, and a broken and retested neckline, are also highlighted as contributing to the mid-term bearish outlook.
Lizards also points out the Elliott Wave prediction, which indicates a correction with wave iv currently in progress.
Also Read: Peter Schiff Predicts Bitcoin ETFs Will Lead To Its ‘Biggest Crash Ever’
Why It Matters: The analysis emphasizes macroeconomic factors, noting that the latest core retail sale numbers were up 1.1%, indicating a rise in inflation. The trader predicts that the Federal Reserve is unlikely to lower interest rates, creating fears of more hikes among consumers and a short-term bearish outlook for Bitcoin.
Additionally, a counterstrike from Israel is not fully priced in, and if that happens, the markets will likely plunge, as such scenarios have historically marked the bottom of the correction.
Furthermore, the analysis reveals that big institutions have paused their buying, with ETF inflow at an all-time low. This suggests that these institutions are anticipating difficult times in the market. Even the Hong Kong ETF approval could not sustain the peak for long, and a sell-off was seen immediately.
In conclusion, despite clear bullish signs, there are strong signals of a potential mid-term correction for Bitcoin, depending on the news flow. This could result in a rise in BTC dominance and a drop in altcoins.
The potential target will be low $50,000, where there is significant liquidity. Lizards notes, “No, the bull market is not over. Just taking a break. Which is ok after such a 1-year up-only move.”
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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