Bitcoin is getting blasted just as the charts have been forecasting for months
We have been managing a coming top in Bitcoin (BTCUSD) for months now, ever since RSI negatively diverged and MACD put in an ugly divergence in March. Most recently, from NFTRH 655 last weekend:
The Bitcoin chart has been degrading since we first noted the RSI and MACD divergences back in March. A little upside whipsaw to fake out the bulls and now it’s back below resistance and the SMA 50. Now, chartists will come out with words about the “complex” Head & Shoulders (something some TAs say when they want to make a gross pattern with too many humps sound really important). It’s not complex. It is just butt ugly. Here’s another thing; the H&S neckline could actually meet the rising SMA 200 in the coming days/week and not be broken. That would be a cool thing where a test of support is met with angst among chart watchers. But an H&S is not an H&S until the neckline is taken out. I’ll continue to call 40,000 +/- as a buy area.
Here is the chart as it stands now. Err, doink. It sure was an H&S.
I added a couple of related items today in the event that this puke is what the bulls hope it is, a shakeout and whipsaw reversal. That remains to be seen.
I am looking at this general market – and especially its most egregious speculations like Cryptos – as vulnerable until market prices start to prove otherwise. But I am also positioned to think like a capitalist and if you don’t try to capitalize on the shear agony of others, what’s the fun? I am just kidding. Come on now. But still…
The damn cacophony with those HODLers and laser eyed momos hopped up on Tom Brady and friggin’ what’s her face, Paris Hilton laser eyed and pumping on Twitter? It was well past time. And of course there was this from a massively followed ex-Goldman expert who was bearish on stocks all through the best of the post-COVID rally and had to find something bullish to attach his name to. He did and the herds did what they did too when experts speak.
Side note: There is my chronic Bitcoin price typo. I write 4,000 instead of 40,000 as if I’m on autopilot and beyond hope. I am consciously trying to fix that internal tick. I think I’m on top of it now.
You are funny. Wrong for a year now about stocks and humping the Bitcoin train. Now I know that BTCUSD 4000 is just a matter of time. pic.twitter.com/XFdhGNPIGn
— Gary Tanashian (@NFTRHgt) May 16, 2021
The media wants to tell us why this is happening, but the truth is it was always going to happen. No excuses needed. This is one case where a chart told the story well in advance.
There is supposedly an ETF coming and Bitcoin is supposedly making mainstream inroads to the banking system. Great. But the correction is a classic interruption of the party.
The BitCON has played out to perfection. Tom Brady, Paris Hilton and of course…
Quite by accident in NFTRH 655‘s executive summary I made another typo and left it right there.
“Bitcon (a typo, but I like it) continues to target 40,000. Short-term bearish, long-term possibly the story the touts tell. Regardless, I’ll touch none of its vehicles unless it tests 40,000 area support.”
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