The Truth of The Matter — BITCOIN! (BTC)

Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it. Looking at the daily chart, you can see that the triangle we've been following for the past few months has morphed into a larger descending triangle. Meanwhile, market bulls are crawling out of the woodwork, proclaiming that cryptos have reached a bottom, but I'm not so sure about that. Descending triangles are bearish continuation patterns, which can produce nasty breakdowns, and there is a massive one on this BTC chart. So, we really need to watch to see which direction this thing breaks. Most likely, it will break to the downside and completely cripple this market.

From the all time high, BTC has formed nothing but lower highs on the chart. Not a single higher high is present (counting only major peaks) which is a powerful testament to the overwhelming bearishness that exists. Technically, it is very beaten. Fundamentally, mass adoption is practically nonexistent, which isn't a surprise since cryptos continue to be plagued by fraud, uncertainty, extreme speculation, institutional rejection, user unfriendliness, and a myriad of other complications. For those reasons, I believe that the forward path for crypto is a major continuation to the downside.

Many of you know that I've been calling for $3,000 BTC for several months now. However, this chart is starting to make me think we could go much lower than that. If you want to be purely technical about it, the height of the descending triangle (vertical dashed line) subtracted from a potential breakdown area, casts a forard projection to zero dollars. You can see it with your own eyes. It is what it is. The path to worthlessness (if that's where we're going) won't necessarily be immediate. So, please be patient.

Looking at the last two lower highs, you can see that they were both failed attempts to rally above the 200 day moving average (in purple.) Now, we've broken back down even below the 50 EMA (in orange.) So, those averages (particularly the 200) are producing some major overhead resistance.

However, there is a small glimmer of hope for the bulls that we must acknowledge. You can see that the apex of the triangle is intersecting the lowest rising trendline (in black.) So, there is a small possibility that BTC could find support there, but I personally don't see that happening. I believe that the triangle is the markets way of building up energy to breakdown through that rising support level. Additionally, the MACD appears to be printing a huge bullish divergence. However, I wouldn't put too much faith in that as an indicator. It isn't unusual for momentum to fall during the progression of triangles. In fact, that's pretty normal. What we (bears) want to see, is momentum expansion on the breakdown, coupled with a sharp spike in sell volume. Until then, BTC is likely to chop around inside of this triangle, possibly into November, before we actually see it break in one direction or the other. Until then, I will remain a seller of rallies in the market.

I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***


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