Bitcoin is at 40,000 now, what’s coming next? Is it going to crash again?


Bitcoin seems to be struggling around 40k now, but if you have read my last analysis, that is exactly what I expected. Please take time to read it again if you have missed it.

I do not think much market analysis is now required to say that we are indeed in a bull run. However, when many were saying BTC was dead a few weeks ago, I kept trying to convince everyone that it is not. In my series of analysis till today, I had been only bullish and never even in any mixed sentiment. 

It was not because of my gut feelings but due to thorough market and price action analysis. In every article, I presented my evidence as well.   

 

To be honest, now I am a bit bored as the market direction is over 95% obvious now. 

 

What is the other 5%? That is for the act of god such as sudden economic downturns in the US economy due to COVID 19, housing market collapse due to its high prices now or any other reason, which is hard to predict. 

 

And that is a risk we all need to take if we want to invest in any financial market. 

 

Bitcoin seems to be struggling around 40k now, but if you have read my last analysis, that is exactly what I expected. Please take time to read it here if you have missed it. 

 

Now, what will be the future of bitcoin? 

 

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As shown in the above chart, which is the netflow of bitcoin to all exchanges, you can see a large amount of bitcoin has left exchanges within a couple of days. Since it is the “All exchanges netflow” we have to presume that those BTC were sent to private wallets for hodling. 

If those investors wanted to sell them off at a profit, they would have kept them there in the exchanges as they did before. 

This is a strong confirmation that whales are indeed in the process of accumulating bitcoin and it is bullish without a doubt. 

Yet, why is BTC struggling around 40,000? Please read my previous analysis that predicted this market behaviour

As per the stock to flow model by BTC should reach 90k before the end of this year. But it will never be a straight line. 

 

As per the Wyckoff Method, we are now leaving the accumulation stage and its trading range and after a couple of pullbacks around 40k - 42k, we should fully depart towards 46k-48k where we might see even greater pull backs. But the exact rage is hard to predict as we need to see more price action data and whale movements to see a better picture. 

However, I believe that we will reach at least 80k before the end of this year if not 90k giving hodlers a great opportunity to profit alongside with crypto whales. 

 

I believe the best strategy in today’s crypto market is simply following the bitcoin whales rather than trying to day trade. 

 

This is just my point of views and Analysis only but not financial advice at all. 

Dr. Buddika Adikari          


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