Bitcoin Hit $60,000 Exactly Like I Warned… Here’s What Happens NEXT

If you've been waiting for a good time to buy Bitcoin, this is that time. Two months ago, I posted this video outlining why Bitcoin would soon fall to $60,000. It was over $100,000 at the time and not everyone agreed with my analysis. But here we are. Bitcoin hit $60,000 last night and it is rebounding fast. And while it is possible that we go straight up from here, I wouldn't count on it. In all likelihood, we'll see something like this over the next few weeks. Now I call it a shallowing base pattern. What you typically get is this sort of resistance area near the highs. I'm drawing here in yellow. And this price action where you get deep dips that just kind of shallow and tighten and consolidate from left to right before a big final breakout higher. And this is typically what you'll see before these big breakouts, especially in commodities like Bitcoin, gold, and silver. Why? Basic supply and demand. What's happening here are the fundamentals of supply and demand. You see, people forget that markets are auctions. They're just buyers and sellers trying to decide what something is worth. When those two parties agree, the trade takes place. But when supply outstrips demand, when there are more people trying to sell than buy, prices go down. And I want you to think about it this way. Pretend you own a car dealership. Let's say it's Toyota. You got 50 Camrys for sale right now on your lot. But they're not selling. You move a couple here and there. But the supply, how many cars you have, is greater than the demand, how many people are willing to buy them. So what do you do if you want to move those cars? Well, you lower the price. In fact, you keep lowering the price until demand increases and people are willing to buy them. That's how it works. And the stock market is no different. So think about it this way. What would make you raise the price of your cars? What would make them go up in value? And there's only two things. Increased demand or a decrease in supply. When Smokey and the Bandit hit theaters in 1977, demand for the Pontiac Trans Am skyrocketed. But I don't see Burt Reynolds bootlegging Coors and a Toyota Camry anytime soon. So the other option is, what if supply were to shrink? What if suddenly there weren't very many Camrys available? We actually saw this in 2021 after COVID. Plant shutdowns meant millions of new cars could not be built. The demand was the same. But supply was lower and the prices soared as a result. So what does it have to do with Bitcoin? Well, it's the same thing. It's a market just like any other. And for the last several months, supply has exceeded demand for these coins. And before prices go back up, that dynamic has to reverse. Supply has to be absorbed. Everyone who wants to sell needs to do so. The thing about stocks or crypto or any other commodity, not every share is for sale. How many Bitcoins are there? 20 million? Most of those are being held. They're in someone's digital wallet or one of those fancy cold storage drives. They're in mutual funds or an ETF. Michael Saylor owns 700,000 of them. He has no plans to sell. So at any given time, only a small percentage of the total supply are actually being offered for sale. This is known as the float. And the bigger it is, the harder it will be to move the price up. But when price consolidates, like we're looking at here, that float shrinks. The supply, any coins or shares, whatever, for sale gets smaller. Retail, institutional investors who have been building long-term positions at low prices, who've been steadily buying this stuff up, they have sucked the supply out of the market. They've shrank the float. And when the supply goes down, that same amount of demand, the same level of buying can send the price higher. Because again, they're chasing a smaller pool of shares. And that's why this pattern is so powerful. It's not witchcraft. It's not voodoo. It's not some esoteric formula like Fibonacci's. It is a fundamental pattern, one formed by the basic principles of supply and demand. I get a lot of questions in the comments. I read them all and say, Ross, how do I scan for these? There's an easier way. And typically, I say no, but I've discovered something that actually might help out. And it's inside of the MooMoo trading platform. Now, I'll put a link in the description if you want to open up an account to check this out for yourself. But all you're going to do is here on the trading platform, click up here at the top on stocks. And then across that top heading, you'll notice the option that says Pattern Finder. And what this does, best I can tell, is scan for these technical patterns across thousands of stocks. And while none of them are a perfect match, the closest thing is this one here in the middle in green called the Bullish Continuation Triangle. And when you click on that, it's going to scan their universe of stocks to look for this pattern. You can see it either as a list of stocks or here at the multi-chart view in the top left corner to see them all laid out. You can really quickly scan through these to see any stocks that appear to be setting up. So XELB here in the middle, for example, looks like a pretty clean pattern. It's breaking out now. Now, I still urge you to focus on the ones in leading groups, all things being equal. No matter how clean the setup, you're going to have a better chance of getting the results you want if you're focusing on leading stocks in leading groups, the areas of the markets that are rising the fastest, since that's where the money is flowing and that's where the odds are tipped in your favor. But this is a great little tool to use if you're looking to find some new stocks and you can let the computer do some of the work for you. But I've been trying out Moomoo for a couple of months now. Great little brokerage. It links to trading views. You can trade right there on the charts. The desktop app, as you can see, is full of great tools. The mobile app is great. The news filter is great. Tons of great stuff in here. So if you're interested, click the link to set up an account. Doesn't cost you anything. Run to the paces and see what you think for yourself. And here's something else crazy. It works in reverse too. The same price action that tells us when something's about to go up can also warn you when it's about to go down. That's the whole reason I made this video on Bitcoin back in December. Look, here's what I said. Look what it's doing now. It's not consolidating. It's breaking down. Price action isn't tightening. It's widening. This is distribution. Wall Street is dumping it. Here, look at the hourly chart. Now let's flip it upside down. Folks, this would be a textbook breakout trade. This would be one I'm getting ready to buy. This is exactly what we see on a move higher. But Bitcoin isn't breaking out. It's breaking down. Let me zoom out and show you where I think this thing is going. Bitcoin will come down and test the April lows down here at about 78,000. That is the next place it might find people interested in buying. If that doesn't hold, it's straight here to 60,000. Now, if you own Bitcoin and you're losing, well, don't worry. This could very well end up being below the sell-off. Plus, at least you're doing better than Michael Saylor. He's the CEO of MicroStrategy, which is essentially just a giant Bitcoin holding company. He lost $17 billion last quarter. And that's when Bitcoin is still up in the 90s. I'm scared to see the number for Q1, assuming he doesn't declare bankruptcy first. Michael, just call me next time, man. Gotcha. Anyway, be sure to subscribe to the channel. If you want to learn how to put this pattern to use in stocks, gold, and silver too, sign up for my $5 Black Ops membership. You'll get an entire year of live weekly mentoring sessions with me, along with my weekly newsletter, indicators, bonus reports, and a bunch more. So just click the link in the description, scan the QR code in the corner, or go to TradeWithRoss.com to get signed up. I promise it will be the best $5 you ever spent.