The cause? Let’s have a deep dive.
1. Fundamental Analysis
El Salvador’s official Bitcoin Tender is Sept 7, same day as the bitcoin crashes. We knew this months ago when they first announced it back then, but we tend to ignore it seeing it as in a bullish uptrend. we all have a bullish bias when it comes to bitcoin.
But it crashes. The market doesn’t care about your biases.
Why did this happen?
El Salvador bought $20 million worth of bitcoin that day, investors need to have a massive sell off to compensate that, followed by FUD’s that led to another massive selling to a flash crash of Bitcoin from 52k down to 43k in 2 hours.
And yeah, El Salvador took advantage of the dip and bought another 200 Bitcoin.
2. Technical Analysis “False Cup n Handle Pattern”
After hours of study and review, I’ve seen another pattern from another pattern of BTC.
We could’ve seen this crash way back. but I’m not aware of this til now, “False Cup n Handle Pattern” REALLY EXIST!!
A Real “Cup n Handle Pattern” should come from an Uptrend, it is supposed to be a bullish continuation pattern, But BTC came from a downtrend and formed a “cup and handle” but a false one, that’s why it crashes afterwards,
Why false? it came from a downtrend.
Same thing happened to SLP “False Cup n Handle” that eventually led to a massive crash of SLP. that is now happening to BTC.
Bitcoin is the “Mother of all coins”, Altcoins follow her moves.
When it crashes, most of the altcoins will follow through.
I still see BTC as bullish, aiming for that 57k upwards. but we should expect it to go around 43k-40k before going up again…
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