What’s Next For Bitcoin – $56k Or $16k?

  1. The extreme upside price rally
  2. The TOP, followed by a moderate downside price trend that sets up the FLAG
  3. The breakdown of the FLAG trend, which then targets a broader support level
  4. The breakdown of that support level, which then targets the ultimate bottom/momentum base level
  5. Once the ultimate bottom/base is established, then a new momentum/bottom begins and trend usually attempts another rally attempt.

Obviously, when you look at the Bitcoin to USD chart (below), it is fairly easy to identify the #1 and #2 setup of the Excess Phase Top. The next question is will price breakdown and attempt to move below the $27,800 recent low support level or will it hold above this level, prompting another rally attempt. If price breaks below the $27,800 support level (near recent lows on January 11, 2021), then we need to be very cautious of the broader Excess Phase Top process continuing and a continued breakdown resulting in lower price trends. If the $27,800 support level holds, as we suggested in the Breakout/Rally example above, then there is a strong chance that $42k to $56k could be the next upside targets.

(Click on image to enlarge)

I understand that readers and traders want to have more clarity on the direction Bitcoin will go, but ultimately, we need price to complete the next phase of this process. It all hinges on the current $27,800 support level right now. As long as that support level holds, then there is a very strong possibility that another upside price rally will begin at some point in the future. If it is broken and the Flag Breakdown continues, then it would appear the Excess Phase Top has moved into Phase #3 and will likely continue to unfold.

WHY WAIT FOR BITCOIN TO BEGIN A NEW TREND – STOCK SECTORS ARE MOVING

Even though we will wait and see on Bitcoin, we see a wide variety of other sectors to play instead of holding out for the right Bitcoin trade. We have seen some explosive trading opportunities in sectoral ETFs despite the pullback in Bitcoin and other assets. One of our Best Asset Now Hotlist ETFs has grown by 23.55% since we identified its trigger a short 9 days. Some of our subscribers that traded options on that BAN Hotlist trigger did really, really well!

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