A lot of the time after such a severe dump a lot of bulls realize they were on the wrong side and wanna desperately get out on a retest
I've seen this countless times where price simply doesn't give this retest on the first try
2/ Instead, it creates false hope, front-running the area on the lower time frame resistances and creating another two or three legs/swings lower on the lower timeframes making all the bulls really anxious and selling their position as they psychologically can't take it anymore.
3/ At that point they are selling right into a higher TF support or close to it based on their emotions.
Price reacts to this heavy market selling and retraces above the next logical point of liquidity.
Right to a place they wanted to sell in the first place
4/ However at this time the mentality is different.
They are no longer looking to sell but rather are scared of price running without them. After all, it's been a rather bigger bounce.
You can see some jumping back in at that point. That's right, into a higher TF resistance.
5/ Right there that's exactly what the smart money needed to get their desired liquidity filled for their shorts.
Right at resistance. At that point, the market is truly ready to head another higher TF leg lower until a further level of liquidity is breached.
6/ Hope u did enjoy this mini thread of my take on what COULD happen.
By no means, this must happen but I have seen this pattern occur time & time again, and if it doesn't this time, it's still valuable to keep in mind for next time when it will.
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This is the most important thread I have written so far
It will set you on the right path going forward and help you realize what YOU want 🧐
▪️ What is PLAN C?
▪️ Why is it so important?
▪️ Realization
▪️ Risks vs Benefits
▪️ Mistakes
▪️ Having a PLAN C
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▪️ What is PLAN C?
The Plan C is to realize why you are here, what is your goal & to HELP YOU follow it at all times going forward.
Once you do it will remove the stress from your trading/investing in a big way.
Must for beginners, great for PROs.
2/28
▪️ Why is it so important?
Cause most of you are just running around trying to chase quick riches, jumping from fear to greed without any plan and that's why you struggle so much
This thread will guide you to set a plan and stick to it. Now let's get to it.
My take on the future cycles & the diminishing significance of halvings
▪️ The end of the 4-year cycle
▪️ Halvings importance declining
▪️ S2F played its role but has come to an end
▪️ Cycles changing
1/14
In the past, cycles were determined & driven a lot by the halvings as it halves the rewards for the miners by 50% every 4 years
In the beginning, the rewards were huge & the halving was very drastic affecting the price a lot but as time goes its importance declines sharply
2/14
As time goes, less & less #BTC is sold on the market by the miners and each halving ensures that the significance of it is declining in absolute numbers.
This leads to the breakdown of the common myth that #Bitcoin is just gonna continue its 4-year cycles for eternity.