BTC CME gaps @3135, 3565, plus deleveraging event. Stay out.
Stay out for two reasons:
1. Global economy: It appears we are in the early stages of a dollar liquidity crisis. The Fed is pumping a $1tn steroid injection into the markets but no one gives a damn. As the Fed shows its impotence, the economy is faced with its immense dollar-denominated credit balance. Long term this will validate BTC, but for the near term, dollars, relative to credit, will be more scarce than even our beloved 21m-capped bitcoin. A deleveraging event is in motion, and holy sh** are people puking.
2. Pure technicals: We have CME gaps down at 3135 and 3565. If we fill these, momentum will be pushing heavily down, suggesting a potential break even lower.
3. Market psychology: We need the strongest of hands to hold this bottom up. Another puke session can't be ruled out to build a strong, strong foundation.
Strategy: Stay out--we have zero confirmation this dump is over. Your stop is going to get triggered in this environment.
1. Global economy: It appears we are in the early stages of a dollar liquidity crisis. The Fed is pumping a $1tn steroid injection into the markets but no one gives a damn. As the Fed shows its impotence, the economy is faced with its immense dollar-denominated credit balance. Long term this will validate BTC, but for the near term, dollars, relative to credit, will be more scarce than even our beloved 21m-capped bitcoin. A deleveraging event is in motion, and holy sh** are people puking.
2. Pure technicals: We have CME gaps down at 3135 and 3565. If we fill these, momentum will be pushing heavily down, suggesting a potential break even lower.
3. Market psychology: We need the strongest of hands to hold this bottom up. Another puke session can't be ruled out to build a strong, strong foundation.
Strategy: Stay out--we have zero confirmation this dump is over. Your stop is going to get triggered in this environment.
Comment:
Edit: CME gap is at 3145, not 3135*.