Sell In May And Go Away

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
“Sell in May and Go Away” is a popular adage on Wall Street and a long used investment strategy. Historically the S&P 500 has performed better between November and April compared to other months. A lot of investors who manage their own stock portfolios and do not have any specialized investing expertise rely on such seasonality patterns to buy and sell. Everyone likes to take a summer break and Wall Street is no stranger to such breaks. Most professionals go vacation between May and August which means they would not want to worry about their investments while they are away. So, most of them end up selling in May as they go away. Considering that a lot of people on Wall Street are involved in Bitcoin this time and that BTC/USD reacts strongly to the S&P 500 , we could see a sharp decline in the price of Bitcoin ( BTC ) between May and October.

If we look at the S&P 500 , we can see that it started to decline aggressively in November, 2018. The index continued to decline till it found a temporary bottom in December, 2018. If we look at the price of Bitcoin around this time, it broke below $5,800 and made new lows for the year as it settled around $3,128. The price of Bitcoin rallied from there following in the footsteps of the S&P 500 . While BTC/USD has been rallying in a rather confused manner, the S&P 500 has been surging with confidence since then. Interestingly enough, the price is now out of room to trade within the rising wedge it has been trading in. This means that we are on the verge of a strong breakout in the S&P 500 . Considering that the index is heavily overbought on the daily time frame and that rising wedges usually break to the downside, this would be the catalyst for the upcoming “Sell in May and Go Away.”

Full Analysis:
Any updated ideas Jef ? :)
JefeCaan Petersv
@Petersv, All according to plan so far.
Petersv JefeCaan
@JefeCaan, I think this is now confirmed that the bottom is in unfortunately. Hopefully at least 4,2 k is a reasonable revisit from now.
+1 Reply
We will see how the month ends in 2 days. Good luck on your trade!

JefeCaan meredas
@meredas, Not so fast. The bears have become too confident too soon.
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