Bitcoin down another 10% today after failing to take out resistance
[edit] An NFTRH subscriber emailed to ask if I’d made a mistake with the measurement. The answer is yes, but not in measuring to 20,000 as he thought might be the case. It’s worse. My response…
Actually no David, I did not make that mistake. But I did make another. The doomsday scenario (and it’s just a chart, mind you) actually measures to below zero. Now, it’s just an inactive pattern on a chart. But still…
I wonder if crypto-currency being data, Bitcoin could actually go to zero. Scary thought, given the pervasive boosting of Bitcoin and its crypto fellows by legions of non-financial types.
The handsome, square jawed boys with winning smiles in the picture above will have to wait a while longer for $500,000 Bitcoin.
BTC/USD crashed, ground around, bounced and halted right at the (red dashed) neckline of the bearish topping pattern. That point was also below the converged daily moving averages. RSI, the clear negative divergence of which was a clear warning about the topping pattern, is negative below 50 and MACD remains negative.
The weekly chart illustrates a grim scenario. Now, I am not trying to create negative hype or scare any kids whose wallets may be full of these bits of data, but the chart is the chart and said chart has formed what looks like a massive Head & Shoulders pattern. It is not active, but if it takes out the neckline at 30,000 active it shall be.
I had originally been thinking about the potential for a pullback to the 2017 high for a serious but manageable correction to kill the hype. But if this is truly an epic bubble that is bursting well, here is the implied target of this pattern: 6,000 +/-, as measured from the top to the neckline.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.
