THIS BITCOIN TRAP IS REKT’ING TRADERS - AVOID THIS!

Original author：Keith Alan Pro Trading

Original source：https://www.youtube.com/embed/aJiLiS-pQ3E

Bitcoin price action has been punishing over leveraged degens in both directions. Make sure you watch this video to the end, because I’m going to show you how to avoid this common crypto market trap, and keep it from happening to you. In today’s BTC analysis I’m going to analyze the price action over the last few days, and climb into how things are setting up for this week. I’ll discuss: Structure RSI Fear & Greed Order Book Liquidity Order Flow BTC Correlation & BETA to Alts If you think the title of today’s analysis is an indication that I got liquidated, it’s not… It’s a testament to the importance of following the data, rather than reacting to price, and above all, disciplining yourself to be patient. There is no question that we are seeing mixed signals… It’s safe to say that bulls are very excited about Bitcoins recent push into the low $80s, and the fact that select alts are pumping has degens looking for a quick moonshot. The truth is, some alts are pumping hard. The reality is, it doesn’t take much to pump through thin liquidity, and many of those Alt coin bag holders are looking for an exit. They’re pumping through thin liquidity on declining volume, and trapping hopium addicts that are reacting to price, rather than the underlying data. Similarly, Bitcoin has been flirting with breakout levels, but it’s also doing so through thin liquidity with declining volume. For BTC specifically, the game seems to be ping ponging between Long and Short liquidation levels until something breaks. While this game does create some opportunities for scalps and swing trades, it is punishing more traders than it’s helping because of a lack of discipline and failure to follow the data. As a trader, I love the volatility. As a macro investor, I want validations or invalidations that provide more clarity… This is what makes studying all of the data, in context, so critically important to portfolio health. Is the Top In? “The Top” may not be in yet, but the data points to signs that we’re getting toppy. There’s still a partial CME gap waiting to get closed at $83,980 A cluster of Short liquidations are creating sentiment for $85k Confluence between the Y.O. & the 100-Week SMA may justify a test at $87.5k Is the Bottom In? So far, the biggest arguments supporting that idea are the fact that the dip to $59.9k was close to the 200-Day SMA, and the Weekly RSI has broken above 41.5… Historically, Marco trends have flipped when Weekly RSI flips the 41 range, but there’s one important distinction this time that differs from what we’ve historically seen on bullish reversals. Weekly RSI has reverted and broken below the local trend line. While many analysts, myself included, have much deeper downside targets, it’s difficult visualize anything in the $50k - $30k range when price is flirting with a breakout from the top of the structure. In reality, nobody knows for sure if $60k will hold, or if we’ll see a catalyst that flips the script and sends Bitcoin back above $100k this year. That’s why it’s critical to follow the data, manage your risk, and remain patient, because reacting to price alone, is likely to get you rekt. Let’s get into it… 📊 Trade the charts. Ignore the noise. 💬 Live chat is open. 🔔 Like, subscribe, and turn on notifications so you don’t miss future BTC market updates. ⚠️ Opinions only. Not financial advice. 🔥 For more info on FireCharts and other tools shared click here https://mi1.pw/kayt2mi Join the Material Indicators Global Trading Community on Telegram https://mi1.pw/kaptg 3Commas - For managing crypto portfolios, trades, bots and back testing https://app.3commas.io/auth/registration?utm_source=referral&utm_medium=cabinet&c=tc95447 TradingView - For charting, alerts, and signals to send to your trading bots. https://www.tradingview.com/pricing/?share_your_love=kapro