Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @teeprince

I will be using Bitcoin to answer the questions listed above and will be sharing my thoughts based on my own knowledge of the market.

Looking the Bitcoin from the Monthly Time frame, and from my knowledge about Market Structure.

The market is in an upward trend making series of higher highs and higher lows.

As at July 2021 when the market reverse downwards after getting to 60k. I wasn't bothered at all because I believe it was creating a new higher low, and that gave me the confidence to invest in it and bought back at 31k.

According to market structure in Technical Analysis, a market in an upward trend will create series of higher highs and higher lows

This year when the market started retracing, which is the current downward trend, I thought it was making another higher low and would rally back up once it gets to a demand.

But all the demands along the downward trends couldn't push the market upwards to create a new higher high. Until it breaks the last demand.

I believe the Crypto Market would start rallying up once it gets to the resistance that turn to support as shown in the diagram below, because according to the theory of inducement, I believe market came that low to induce last year low (showed in the diagram below as IDM, meaning inducement) which it has done already and that it will tap to that demand below and confluence with the neck line or resistance turn Support

Since the market has not taken out two structural low in its downward trend looking at it from the monthly Time frame. I believe the market will rise again soon.

The volume is still high because people are still trading it every day as they also believed the same way I believe that bitcoin can't crash.

Another reason why the volume is high is because people are trading futures daily.

The current market downturn virtually affects all currency and I am not bordered about it because base on my Technical analysis knowledge, I still believe the crypto market is still going back up.