In a recent video, popular cryptocurrency analyst Nick from Cheeky Crypto delved into Bitcoin’s technical indicators, wave analysis, and market speculation to provide insights into the cryptocurrency’s potential price trajectory.
Continuation-Based Pattern and Bearish Signs
Nick suggests that Bitcoin is currently in a continuation-based pattern, which is likely to break down. This pattern, known as an ascending wedge, is a bearish continuation pattern that indicates a potential downward movement.
Technical Indicator Analysis
Despite being above the 50 EMA, 50 SMA, and 200 EMA, Bitcoin’s price action is exhibiting signs of weakness. Nick highlights Bitcoin’s “dancing around” these levels, suggesting a potential bearish breakout. Additionally, Nick speculates on a bearish flag formation due to overlapping structures, further supporting the bearish outlook.
Wave Analysis and Price Targets
Nick predicts a five-wave count to the downside, suggesting a potential drop in Bitcoin’s price. However, Nick anticipates a temporary move up to liquidate long positions before the downward trend unfolds. Nick emphasizes the importance of Bitcoin not crossing below $34,120 for the pattern integrity to remain intact.
Daily Chart Analysis and Potential Shift
On the daily chart, Nick identifies a corrective but impulsive five-wave structure, with a potential target of $40,000 for the completion of the pattern. However, Nick also discusses the possibility of a shift to the downside, with a target range of $30,000 to $31,000.
Market Speculation and ETF Approval Delays
Nick speculates on potential delays in the approval of Bitcoin spot ETFs, specifically mentioning BlackRock’s spot ETF. Nick predicts that even if approved, there could be a sell-off followed by a slow buildup of liquidity.
Volume Analysis and Skepticism
Nick points out the low trading volumes on Bitstamp and Binance, expressing skepticism about the bullish market narrative due to these low volume profiles.
Conclusion and Critical Moment
Bitcoin is at a critical moment, with a potential move to $40,000 on the horizon. Nick encourages viewers to stay updated on the latest developments and subscribe to their channel for more insights.
The video concludes with a positive outro, thanking viewers for watching and inviting them to engage with the Cheeky Crypto community.