BITCOIN: Another PUMP Coming?

Title: Bitcoin Technical Analysis: Examining Price Action on Different Time Frames

Introduction:

Welcome back to Cheeky Crypto! In this article, we will delve into the world of Bitcoin and analyze its price action using technical analysis on the 1-hour, 1-day, and 1-week time frames. I will share my thoughts and opinions on where I believe the Bitcoin price is heading. If you find this information useful and informative, please smash that like button and consider subscribing to our channel for more updates. Additionally, don’t forget to join our free Discord community, where you can engage in 24/7 crypto discussions. Let’s dive right into the charts!

1-Hour Time Frame Analysis:

On the 1-hour time frame, we can see that Bitcoin is still within the triangle pattern that we have been tracking over the weekend. We were hopeful that the D-wave had completed earlier, but it seems that the E-wave is now in progress. The E-wave is the one we want to catch for a long position, as it typically leads to an explosive move to the upside. Currently, there are two approaches to consider: entering a long position now with a poor risk-reward ratio or waiting for a retest of the low for a better risk-reward ratio. The stop loss should ideally be placed below the 200 EMA, which is currently at $33,135. The target range for the E-wave movement is $35,790 to $36,638.

Daily Time Frame Analysis:

On the daily time frame, we can observe a fair value gap between $3,248 and $3,832. This range indicates an illiquid market where large buy orders were unable to be filled until the price increased. While there is no guarantee that these gaps will be filled, historical patterns suggest that they often are. Therefore, it is likely that Bitcoin will move down to fill this fair value gap. Additionally, there is a CME gap at $34,000 to $35,000, which was created in the futures market. Historically, CME gaps have been filled, so it is reasonable to expect a move down to this level. If Bitcoin loses the $30,000 support, it could potentially drop further towards $24,000.

Weekly Time Frame Analysis:

On the weekly time frame, the Bulls achieved a nice weekly close recently. However, we need to be cautious as this could potentially be one of the biggest bull traps in Bitcoin history. Higher highs and higher lows often break down, so it’s important to be aware of this possibility. Additionally, the volume profiles on both Bitstamp and Binance are significantly low compared to previous months. This divergence between low volume and rising prices raises questions about the authenticity of the current upward move. It is possible that this is a manipulated market, with market makers and whales driving the price higher to liquidate retail investors before a downward move.

Conclusion:

In conclusion, based on the technical analysis on different time frames, it appears that Bitcoin may experience a small move down in the E-wave, followed by a larger move to the upside in the fifth wave. On the daily time frame, corrections to the downside are expected, and the macro outlook for Bitcoin is not particularly strong. It is crucial to monitor these developments closely and consider the potential risks involved. Share your thoughts in the comments below!

FAQs:

1. What is the significance of the fair value gap in Bitcoin’s price action?
2. How do CME gaps differ from fair value gaps?
3. Should I enter a long position now or wait for a retest of the low?
4. What are the potential targets for the E-wave movement?
5. Why is it important to consider volume profiles when analyzing Bitcoin’s price action?
6. What are the potential risks associated with the current upward move in Bitcoin’s price?
7. How can I stay updated with the latest crypto news and analysis from Cheeky Crypto?