Can This Chart Possibly Look Anymore Bearish?

15 mar 2018

Bitcoin's bubble continues to deflate, slowly but assuredly. Looking at bitcoin's weekly chart, it just screams bearish as price moves along nicely towards the 5k target as anticipated. The next major support to break is that 6k low established on 02/05. Bitcoin attracted a lot of speculative buyers last year to the point where people were just panic buying near the end of the year causing a speculative bubble to form with not much liquidity to back it up, and 2018 has seen the fallout of this bubble. The scale of the slide from 20k shouldn't surprise anyone and there is a case to be made for price being extremely overvalued even at 5k. If you look on the chart you'll see that exactly one year ago price was "just" $1000, even at 5k price will still be up 400% since then, but has bitcoin's utility gone up 400% since then? I don't know anyone rushing to go buy bitcoin for its utility, we've got Visa or Paypal for that, so there is mostly speculative buyers in this market, "hodlers". And for that, speculation, bitcoin remains a fine tool.


Sell idea at $11500 from last time

Price broke that major trend-line, as anticipated