The Bull Run of 2021 Is Not Over

Over the last few days, we seen severe panic in the markets and a sharp dip to 30K BTC. In the mix of this ALTs have taken massive hits that were down right ridiculous as noob panic sellers capitulated. Before the dip, was an onslaught of constant FUD in the media, press, YouTube and all over the chats via rumours. We also had the post on 4chan claiming it was an insider and that they were going to cause the price to dip in order to wash out a specific investor.

Not to mention that a lot of the FUD was not even new FUD. It was old news from China “banning” Bitcoin. Since when did we care about that?

And as far as the Elon Musk thing, read my previous post to rebut him here.

Add all this up and we have a clear attempt to tank the price of BTC. But was it? Heres the thing.

In one of my last posts here I discussed a chart that most people are not looking at. In that chart, and also in the regular BTC chart As well as some others we will look at. We can see that all of this was in the cards. These charts also show us that it is very likely that this bull market is NOT over. There is a lot to unpack here so let’s get into it.

First off. Let’s look at the M1 VS BTC/USD chart.

Quick TL;DR explanation of what this chart is. This chart is Bitcoin’s price with the inflation of USD accounted for.

What we can see here is that we broke out of a multi year bull flag (AKA the bear market). We rocket out of the flag, hit the yellow resistance band, try to get through it multiple times, loose steam and break down. This break down however was needed in order to retest the previous formation which we just did on that last dip. See the wick touches the white line. This was nothing more then a retest of a very large breakout. Nothing more, nothing less.

Second. Let’s look at the regular BTC chart.

From this perspective BTC has it’s run up and distribution. Consolidates in a symmetrical broadening wedge and breaks down. But theres a red ring in there, what that red ring is, is a fibonacci ring from the swing high of 2017 to the covid swing low of 2020. It has acted as both resistance and, now support. We are also doubly retesting the breakout of the white line at the same time here which is a regular practice in crypto. This is bullish so long as we stay above the retest, maybe consolidate for a little while, gain confidence and begin making moves. Some healthy sideways action would also give the ALT coin market a chance to breathe and show some strength.

Third. Let’s examine the USDT.D chart.

In the USDT Dominance chart. We can see a clear break from a bearish rising wedge. This break formed a bullish descending wedge. This tells us that the chart like the others, will retest the break from the large rising wedge and also likely fail. Also keeping in mind that USDT.D in this area is near its ATH. USDT will flow back into BTC > This is where BTC recovers and ALTs start to recover.

Forth. Let’s examine the BTC.D chart.

Here we have the Bitcoin dominance chart. I have been posting this chart in my telegram channel for some time now and we used it to call ALT season. The issue here is that the purple line is a line of significance. It is likely that Bitcoin would attempt to retest that line. Hence we wicked down to the absolute bottom (blue line), stopped in its tracks and is attempting to retest now. I believe this retest will fail. USDT will flow back into BTC > BTC will flow back into ALTS > This is where the explosive ALT season will occur.

Conclusion.

You can chalk it up to manipulation, whales, FUD, whatever you want. The fact of the matter is that all of this was called out before hand, it was always in the cards. We needed to retest in order to create healthy market structure. Remember; the more explosive the move up, the more explosive the retest will be. It’s that simple. Nothing goes straight up forever and nothing goes straight down forever. We need to create a base under our feet so we can have proper footing here.

It’s time to calm down. The fundamentals have not changed. Governments are still printing TRILLIONS of dollars, BTC and ALT coin projects are still WORKING to solve real world problems. Forget all the sensational bullshit they are feeding you all over the place, forget the hype, forget the over exuberant meme coins while you are at it too. It’s time to get serious. This bull market is not over. If you are on the sidelines, you just got a 50% dip. Not buying here is risky as you may end up getting left behind.

Categorised in: Cryptocurrency Markets, Cryptocurrency Trading, Fundamental Analysis, Game Theory, Technical Analysis

This post was written by BlockAdvisor