Key facts:
Indicators like Supertrend signal that the bitcoin price will drop to $20,000.
In the midst of a bear market, the ideal is to trade, not invest in the cryptocurrency.
Content sponsored by ProfitFarmers
The price of bitcoin (BTC) is crashing and will crash further. How is it possible to know? Through indicators such as Supertrend. It is a reliable long-term trend indicator that shows BTC heading towards $20,000. With such a low price, many see a good opportunity to invest. Mistake: Bear markets are for trading, NOT investing, but you have to learn how to do it right.
ProfitFarmers is a free platform that provides trading signals, copy-trading, advanced automations, and free trading education so traders can profit safely, even in choppy markets. In the past, ProfitFarmers warned their community for months that bitcoin would most likely lose 50% of its value. At that time, the price of BTC was $45,000.
The company analyzed the historical behavior of bitcoin, ether (ETH), and traditional stocks to find the most likely bottom. His analysis showed that BTC would most likely drop to $20,000.
The team has been keeping an eye on the Supertrend indicator, a highly accurate and reliable predictor of long-term trends. The indicator shows that BTC is likely to find a bottom around $20,000and that if it does, the altcoins will possibly lose 99% of their value.
In short: DO NOT INVEST. Trading is where all the money is. In this article we will walk you through some historical analysis and learn how to thrive in the bear market that is looming in the coming months.
The reason you shouldn’t invest in bitcoin right now
History shows that after bitcoin hits an all-time high it eventually drops 50% or more in the opposite direction. And when BTC craters, altcoins can lose up to 99% of their value. So this is the situation we are all in right now:
Bitcoin broke through key support and signs point to its price bottoming out at $20,000. However, if it does rally to $36,000, there is a clear path to a faster V-shaped recovery. So you are in a great place right now to wait and see. If it breaks, fine. You did not invest at the wrong time. If it goes above $36,000, freak out knowing we’re on our way to the moon. However, it is much more likely to hit the bottom, $20,000.
Now is the ideal time to TRADE. If you learn to be a ninja through agitation, you can make a killing. Then when BTC bottoms out, you’ll have the money to load that moon bag for the next bull run. Before learning how to trade, let’s dive into some historical price data that proves this theory.
What is the Supertrend indicator and why trust it?
Supertrend is a high time frame indicator that shows long-term price trends. It is a reliable and accurate tool that clearly shows the difference between uptrends and downtrends. It helps predict support and resistance levels and see where the market is heading. With this guide, you can invest wisely instead of blindly throwing money away.
Time and time again, this indicator has proven to be accurate. The BTC crash of 2017, the ETH surge from 2017 to 2020, the crash and rise again, even the recent boom in Tesla stock were all events that the indicator predicted.
Let’s go back to the bitcoin crash of 2017 (sorry for triggering your PTSD). BTC hit an all-time high of $20,000 in 2017 only to crash and burn. Eventually, it settled in the range of $3,000 to $4,000. And guess… The Supertrend indicator saw it coming.
Check it out:
See those multi-colored lines on the graph? Those are the levels of the Supertrend indicator. Bitcoin prices hit all levels of the Supertrend indicator on the way down before bouncing back, retesting key resistance, and then breaking out.
Here is another example with ether:
On the way down, Ether tested all of the Supertrend levels before settling at the $100 lower level. It behaved much the same on the way up. Even non-crypto assets tend to follow the Supertrend indicator.
Let’s look at the meteoric rise of Tesla.
Notice how Tesla follows the same patterns during its “mega-move” from 2013 to 2016:
Note that it rises to a new all-time high only to settle at the bottom of the Supertrend indicator. In a nutshell, this tool works.
What does the Supertrend indicator say about the price of bitcoin? (Not good)
At the time this chart was created, the price of bitcoin was swinging on Supertrends between $34,000 and $48,000, but history says the markets demand violence. Since then, the market has broken down to the Supertrend 5.5 level. Exactly as predicted! Do not you believe it? Check out the ProfitFarmers blog for more information.
This is a very realistic scenario based on data and market dynamics. Can’t say when, how if it’s 100% safe, no one can. What can be said is that historical data shows that this is more likely to happen based on what is now known.
How to thrive during a bitcoin downtrend
Look, you have to be 100% honest. It is possible to succeed in any market… If you know what you’re doing. So you have two options:
1. Become an expert trader who fully understands choppy markets
Once you master technical analysis (including the Supertrend indicator), from there You must understand risk management, the risk-reward relationship, and the mechanics of a choppy market. You need amazing instincts to sense when trades might close early or rally and return profits. The choppy action is violent at its best and just plain brutal when you get lucky.
You can learn the proper trading strategies with some time, patience, and a big enough budget. Or you can let ProfitFarmers do it for you for free.
2. Use ProfitFarmers free education, signals and professional trading tools
ProfitFarmers is a free platform that does all that technical analysis, planning, and hard work for you. It is a trading copy, signals and education platform that provides you with artificial intelligence (AI) trading plans and professional tools to execute trades on autopilot. Basically, it does half the work for you.
It is ideal for professionals, beginners and anyone interested in trading. You can do as much or as little as you want. For beginners, it offers free analysis and education (that’s usually spot on!), high-probability trade setups, and simple tools to copy AI trades. You just add the money and you’re done.
Professionals get an advanced trading terminalfull control of your trading plans, and market research tools, like its price action scanner, to make trading more profitable.
Try ProfitFarmers for free. Setup takes just a few minutes, is 100% free, and includes education, signals, copy-trading, and professional trading tools. Its Trade Guardian feature automatically exits trades when it detects danger. You can go to bed without worrying about choppy markets. It’s the tool you need to survive and thrive in brutal bear markets.
Even in difficult situations, like this recent crash, ProfitFarmers members still get signals like these:
All of this is available for free, including tools like a price action scanner, an advanced trading terminal, and a relative strength index scanner. Sign up for ProfitFarmers for free and start trading like a pro regardless of your experience level.
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