Oh yeah, I’m talking about a much bigger pullback in Bitcoin than what anyone else is talking about.
Feel good about today, and for however long this bounce lasts. For now, this is nothing more than a dead-cat bounce.
Sure I could be wrong on this chart, but for that to happen, and for the chart below to be rendered null and void, it needs to break back above $20,000 fairly soon, and at the moment, that is asking for a 100% move, despite the bullish trend that Bitcoin had been riding is now broken.
You have one more trend-line that the bulls can hope to count on, and while it has violated the trend on an intraday basis, it has held up so far on a closing basis.
However, if that breaks, it is going to go south, very quickly – to $6,000.
Call me a ‘hater’ or whatever, but I am telling you this without a bias and without a position in this currency or any other currency (except for the US Dollar and a few Canadian coins that some random gas station attendant gave me as change) and with no plans to ever have one in the future.
The bitcoin chart has so many bearish developments to point out:
- Topping pattern in the form of a descending triangle, that is inherently bearish has has already confirmed.
- Lower-high and lower-low already in place.
- Most recent trend-line on the daily chart broken aggressively.
- Distribution at the top and key support broken
Conclusion: Don’t let the hype out there, have you buy something simply because you feel like you are missing out on the latest craze. The chart is broken on Bitcoin (BTC.X). And there is absolutely no good reason to buy it here.