A nice Heads and Shoulders is currently forming. This was discussed as a possibility in my last idea.
With stocks and gold on a definite downward track and dollar pumping, it is very hard to see BTC bullish . But it is not impossible that BTC resumes an upward trend. There is the narrative that liquidity will move from stocks and gold into crypto because they are falling. In counter to this narrative, a liquidity move from legacy to crypto didn't happen in March 2020 and institutions and traders that are heavily margined long in stocks now but hold crypto will sell their crypto to cover their margin call.
BTC has been strongly correlated to SPX these last 2 weeks, so unless SPX changes course we will see a continued decent in BTC .
With stocks and gold on a definite downward track and dollar pumping, it is very hard to see BTC bullish . But it is not impossible that BTC resumes an upward trend. There is the narrative that liquidity will move from stocks and gold into crypto because they are falling. In counter to this narrative, a liquidity move from legacy to crypto didn't happen in March 2020 and institutions and traders that are heavily margined long in stocks now but hold crypto will sell their crypto to cover their margin call.
BTC has been strongly correlated to SPX these last 2 weeks, so unless SPX changes course we will see a continued decent in BTC .
Note
Head and shoulders has been invalidated. Breakout of the channel will flip the trend bullish but must wait for stock market open to validate trend since obviously there will be also a CME gap opened.Note
rejected Note
Price still range bound. Closed the CME gap and had pressure from pre-market stocks. Price likely to staircase down
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.