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BITCOIN: Flash Crash Liquidity Grab or Healthy Correction Ahead?

BITCOIN: Flash CRASH Liquidity GRAB!
BITCOIN: Flash CRASH Liquidity GRAB!

Technical Analysis Focus

Bitcoin’s recent price action has been characterized by volatility and rapid moves up and down, as the market hunts for liquidity. A significant liquidation event of $118 million occurred in the last 24 hours, highlighting the current market conditions.

On the 1-hour Binance chart, Bitcoin is showing signs of a potential corrective structure. This suggests that a pullback towards $40,000 may be imminent before a further upward push.

On the weekly timeframe, Bitcoin is forming a potential rising wedge pattern, which is typically bearish. This pattern could lead to a continuation of the downtrend, with potential support levels at $20,000 and below.

Historical Perspective and Future Predictions

Healthy corrections are a natural part of any market cycle, and Bitcoin is no exception. In 2021, Bitcoin experienced a bull market with minor corrections, fueled by significant money printing. However, in 2017, Bitcoin had a gradual market push, not fueled by massive stimulus checks.

As a result, the current market is expected to be slower, with less money injection. This suggests that the upcoming correction may be more gradual and rhythmic, contrasting with the rapid trends of 2021.

Investment Strategy

The upcoming downside move could be a buying opportunity for altcoins and Bitcoin. However, it is important to note that Bitcoin is currently overbought on the monthly and weekly timeframes.

Global Factors

In addition to technical factors, global factors such as the absence of a Fed pivot and the potential for a 50% stock market correction could also impact Bitcoin’s price.

Personal Perspective

Nick stresses that their opinions are personal and not intended to be taken as financial advice. They encourage viewers to engage through likes, subscriptions, and Discord participation.

Conclusion

Despite the current positive market trends, Nick cautions viewers about potential risks and concerns. Nick advises careful observation of support levels and being prepared for various scenarios.

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