What Next?

Crypto finds itself in a brand new position

Gm friends, and welcome back to another edition of Syko Therapy.

This previous weeks price action on Bitcoin has changed a lot. From the $60k low, we had a very solid plan in place and rode the waves very nicely all the way to $83k, reclaiming a large number of HTF key levels and metrics, whilst the bears faded the entire move higher.

Everything has been looking right on track. Business cycle expansion, liquidity expansion, COPPER/GOLD breakout and small cap stocks ratio in expansion. Everything, that in the past, has created the perfect environment for bitcoin to truly find its feet. But it has so far, remained weak. The most notable thing from this move was that many HTF, historically accurate bottom signals fired, and for the first time, Bitcoin then made a new low.

Why is this happening, you ask? We will definitely be getting to that, don’t you worry!

Now, at the moment, Bitcoin has only made a very marginal low that has not made a lower daily close, as of yet. The case can most definitely still be made that this recent move is just a liquidity sweep, in which the $60k low bottom signals are still intact, as within every other previous cycle, and this move lower is simply a spring before more ranging and then higher. But after losing our $74,400 level, in my view, that is not 100% guaranteed. And, unfortunately, the strongest and most bullish reversal that we were hoping for, has now become far less likely, however, not impossible.

This market is frustrating, and I understand you’re all feeling the weight of this underperformance to the wider market, and getting a bit fed up of these red candles. I am too. However, it is very important to remember that regardless of the fact that we lost $74,400, and our path to the fastest market wide recovery, we are still most definitely bottoming, and very close to our market low, if it is not already still in. The worst of it is now behind us. There are no two ways to put it, we are highly oversold and everything is in a high value accumulation place - the job now is to navigate this as best as possible.

As time progresses, it is my view that Bitcoin has a structural issue that is very likely being driven by something we cannot see. This could be a deleveraging issue, or it could be a manipulation issue by very large vested interest players before the Clarity Act.

Today, I will be reviewing the recent move, going over the current situation on the LTF and HTF, and helping you assess where we now are, and what we need to be looking for to establish if this move was simply a $60k low liquidity sweep, or the start of another HTF move to lower prices. In addition, what this means for altcoins.

Now that our base case of continuation above $74,400 has been invalidated, we must move forward to total objectivity and ensure we get on the right side of the market before the next major move, either up or down.

Let’s get into it!