Happy Monday, we've seen the price of the Bitcoin keeps dropping since the last weekend. A huge corrective movement since the $59000 toward the $44000 which is pretty significant and has affected the whole crypto market which we see the huge downfall of another altcoins since its peak. The majority think that this downfall is because of the Elon Musk's tweet about canceling BTC as the payment of Tesla.
However, I don't think that the Elon's tweet will give a huge effect of the price action as well. We know that it may affects the movement of the Bitcoin in short term and may change the lower time frame momentum but for the bigger picture, he can't simply change the bias that the market has made easily. Remember, this is a $800 Billion market capitalization asset which I believe not a single person can change the majority bias for higher time frame.
Another proof is that we actually have seen the sign of potential drop since the May 11 when there was a confirmation of lower high structure as the validation of the Head and Shoulder pattern in the daily time frame. The confirmation of lower high and the right shoulder is the sign of losing momentum too. I personally am a technical maximalist and don't believe in the fundamental because it's fully manipulative action that becomes the media contents to drive the traffic to its own benefit. The higher time frame's bias may not change and if you see it from the technical perspective, it's legit and trusted.
For the short term, I do think that bitcoin is actually testing the major support at around $44000 zone and bear is looking exhausted as of now. There is a support trend line forming which is in alignment with the major support. A bounce is likely as the validation of the relief rally which can drives the price toward the upper resistance of $50000 or $55000. For longer term, it's still unbiased and neutral. We can see the lower level push in the mid - long term price action toward the support 2 which is around $30000 or even lower if the price breaks below current major support zone.
However, I don't think that the Elon's tweet will give a huge effect of the price action as well. We know that it may affects the movement of the Bitcoin in short term and may change the lower time frame momentum but for the bigger picture, he can't simply change the bias that the market has made easily. Remember, this is a $800 Billion market capitalization asset which I believe not a single person can change the majority bias for higher time frame.
Another proof is that we actually have seen the sign of potential drop since the May 11 when there was a confirmation of lower high structure as the validation of the Head and Shoulder pattern in the daily time frame. The confirmation of lower high and the right shoulder is the sign of losing momentum too. I personally am a technical maximalist and don't believe in the fundamental because it's fully manipulative action that becomes the media contents to drive the traffic to its own benefit. The higher time frame's bias may not change and if you see it from the technical perspective, it's legit and trusted.
For the short term, I do think that bitcoin is actually testing the major support at around $44000 zone and bear is looking exhausted as of now. There is a support trend line forming which is in alignment with the major support. A bounce is likely as the validation of the relief rally which can drives the price toward the upper resistance of $50000 or $55000. For longer term, it's still unbiased and neutral. We can see the lower level push in the mid - long term price action toward the support 2 which is around $30000 or even lower if the price breaks below current major support zone.
