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A couple notes on Bitcoin. We appear to be forming a wedge, but we are nowhere near its natural terminus on the 1H:
The Fear factor remains high and the pattern makes a lot of sense against that backdrop. While Elon Musk & Tesla might be looking to break up with Bitcoin, the overall market is not. I'm sorry that Elon failed to "DYOR" and "DD" before he spent $1,500,000,000 of company money on the asset. If I had a CEO that reckless, I'd be looking for the first available exit on $TSLA stock, that's for sure! Are you serious that Elon didn't notice Bitcoin has a bit of an environmental problem before dropping a billion on it? BS. It's straight up market manipulation. Elon is a market manipulator. That's that.
Bitcoin is trading tight to its 50 EMA because no one is sure if Bitcoin is going into a bear market or whether or not it can technically retain its bear market. Yes, we are still in a bear market and yes, the last bull cycle did include a deep drop to the 200-day EMA.
The 200 EMA sits above $41k. This is an important line that we are going to need to test soon. A failure there keeps us in the $36k range. A breakdown and close below $36k could signal a bear market, as many believe we are entering. A breakdown below $36k would solidify that sentiment. Fear is a hard sentiment to break once it forms.
One positive takeaway: Bitcoin enjoys a convention in Miami this weekend where Floyd Merriweather (sponsored by Ethereum) was booed and volume is still strong. Volume can be everything when an asset is teetering on the edge of falling into a bear market. Volume will be what we'll be watching over the weekend. Happy trading, be careful out there!
And now, it's time for a little Investing 101 reminder:
In Bull Markets, there are corrections.
In Bear Markets, there are rallies.
Now go make some money, folks!
