Bitcoin Pullback Setting Up An EXPLOSIVE Bounce or CRASH?

bitcoin bounce

The hot topic on everyone’s minds lately is cryptocurrency. The big question has been where will bitcoin start to bounce? Will it bounce or will it crash? Is it done or will it start to move again?

I’m going to be doing a live event on YouTube on Wednesday July 19th, at 5pm with Rahul Sood, CEO of Unikrn. He’s one of my old mentors and someone who helped me start Bulls on Wall Street. We will be discussing “The Future of the Cryptocurrency Market” and how we can all capitalize on the crypto boom.


Bitcoin has gone on a tremendous run from $600 all the way to $3000. One of the things that we talk about in trading is that when you have a big run, stocks also get tired and need rest. So after a big momentum push, periods of rest, or sideways consolidation is a powerful thing. Rather than crashing down, it sat around in a range. Stocks, currencies, the futures market gain power from consolidations. These consolidations allow the instrument to build up power and allow fresh buyers to come in and take it to new levels.

Right now bitcoin is hovering around $2100 – $2300 mark. What you can see is a certain level of support where it’s been holding. When you have support and you test that support numerous times the more valid the support level becomes. But another thing that happens is when you test the support too many times it becomes weak. When you beat down a door, it gets weaker and weaker. At some point when it breaks, it becomes explosive. If we want to be a buyer, we have to wait and see if that support holds.

Additionally we can see a top range that’s been developing. After drawing a trendline, you have clearly defined levels. This is a wide range. In trading, what we want is type areas. Type areas and consolidation give power and potential for explosion. The term is called range contraction. So when the range contracts and gets tighter and tighter, the break can be very explosive.

With the 9 EMA thrusting on it this is where we need to see a change. When looking at a market or a stock, we look for changes in character. We look for a change in the structure of how it’s acting. The first thing I’m looking for is to see if it starts to round and break over the 9 EMA. If the trendline break holds then I have confirmation. It means that this area is holding and I can start to take a position. But until that happens, I do not trust it.

Make sure to join us for our live YouTube discussion on July 19 at 5 PM EST. Click here to set a reminder so you don’t miss it.



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