With the S&P now potentially rolling over, that represents a risk-off environment for the time being. At the same time, Bitcoin is now at resistance on a long term basis (pay attention to the arrows). For long term investors, getting long in the blue circle is the entry range to keep an eye on. The most ideal scenario bulls could see is price being rejected here and consolidating for about 3-6 months around the blue zone. That would provide the energy needed for a strong run to the upside.
I am paying close attention to this relationship below. While I'm treating Bitcoin independently, I still want to have my eye on how price reacts to overall market conditions.
I am paying close attention to this relationship below. While I'm treating Bitcoin independently, I still want to have my eye on how price reacts to overall market conditions.
Comment:
Since I published this, Bitcoin has been completely flat. It's been 8 weeks. Pretty remarkable for such a historically volatile asset. The blue zone has yet to be filled and in my opinion the market needs it to be filled before a major move higher, even if it's just for an hour. I would recommend having buy limits in that range spread out. The next move will be incredibly quick. For bulls, we want a push lower first, followed by a quick absorption by longs.