Back in March (should anyone have forgotten and I think retail investors may have!), the stock market crashed 36% with Bitcoin taking a 50% dive at the same time (orange line)
Now I’m not a big fan of the idea that Bitcoin is behaving like another equity but recently it is hard to ignore the fractal like behaviour. I’m more of the opinion that when money is needed, assets are sold, regardless of what.. including gold.
The technicals:
Prior to the Dow Jones crashing (blue line) RSI support became resistance (circled in yellow). Bitcoin (orange line) matched the correction, albeit somewhat more violently. I believe we’re on the verge of a similar correction. The Dow Jones RSI support became resistance last week. Furthermore Stochastic RSI is pointing downward.
We have 8-days to go until the last candle is complete on the monthly chart below. However we can currently observe sellers are holding the 21-week as resistance (yellow line). If by Tuesday next week price action closes lower than it opened (resulting in a red candle), it would be a strong signal of a significant market correction.
Now I’m not a big fan of the idea that Bitcoin is behaving like another equity but recently it is hard to ignore the fractal like behaviour. I’m more of the opinion that when money is needed, assets are sold, regardless of what.. including gold.
The technicals:
Prior to the Dow Jones crashing (blue line) RSI support became resistance (circled in yellow). Bitcoin (orange line) matched the correction, albeit somewhat more violently. I believe we’re on the verge of a similar correction. The Dow Jones RSI support became resistance last week. Furthermore Stochastic RSI is pointing downward.
We have 8-days to go until the last candle is complete on the monthly chart below. However we can currently observe sellers are holding the 21-week as resistance (yellow line). If by Tuesday next week price action closes lower than it opened (resulting in a red candle), it would be a strong signal of a significant market correction.
Commento:
Yesterday both the Dow Jones & BTC trended in the same direction, Bitcoin dropping a little more. July looks like it is going to be a choppy ride. Unless the FED saves us. Again. And again...
Commento:
Ten day chart of the Dow Jones below. The next ten days will be the most interesting of the year I think. How did the last 10-day candle close with so much buying pressure to close higher? Open to ideas!
If indeed buying pressure is confirmed with the next candle, then the Dow is likely to go to 30k. That's great news for BTC.
If indeed buying pressure is confirmed with the next candle, then the Dow is likely to go to 30k. That's great news for BTC.
Commento:
The 21-week moving average (yellow line) is 99% certain going to cut through the 200-week (red line) before the end of the month. Look at the angle, steep and fast, 30% off the market with ease seems almost certain over the coming months - what does this mean for Bitcoin? If the last correction in March means anything, the the answer is - be patient, cheaper prices might be coming sooner than you think.
What happened to price action in the markets the last time the 20 crossed down the 200-week? In summary - nothing good.
September 2008, -40% two months of carnage
October 2001, -20% - worst year for investing at the time
1969 & 1974
What happened to price action in the markets the last time the 20 crossed down the 200-week? In summary - nothing good.
September 2008, -40% two months of carnage
October 2001, -20% - worst year for investing at the time
1969 & 1974
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR