The 2-hour chart on BTC and ETH is making a DANGEROUS pattern.
Yes, Bitcoin and Ethereum are still just above their key support level on the weekly chart.
But things are not developing well on the 2-hour chart and this is something I also take into account.
We've made lower lows 3 times in a row. We're now quite likely to make another low just below the previous one, around 72k.
After that, Bitcoin will most likely make a small bounce after grabbing some liquidity. And this is exactly what I'm going to observe.
◼️ From there, 2 scenarios:
🔹 If the bounce is weak (let's say to 74k then stabilization), then this whole pattern is more likely to break to the downside. A weak bounce is the most likely scenario to me.
🔹 However, If Bitcoin bounces and manages to stay above 75k, then we're talking about a potential reversal candle with a move that can send us above 80k. This scenario is less likely because we're already making lower lows in a downtrend.
Concerning the $BTC and $ETH trades I shared, we had nice reversals from the bottom. However, they ended up being closed both at break even following the latest move.
The most uncomfortable reality of crypto investing
10% loss → +11% to break even 20% loss → +25% 30% loss → +43% 40% loss → +67% 50% loss → +100% 60% loss → +150% 70% loss → +233% 80% loss → +400% 90% loss → +900% 97% loss → +3,233% 98% loss → +4,900% 99% loss → +9,900%
After taking out the April lows and reclaiming the range low, I am now more than ever looking at theses 2 strong liquidity levels. February low IMO is in for now and we hopefully see some sideways and up , but I don't think its over!