Okay folks, I have officially fallen asleep waiting for the big moon shot that all the big mouth YouTube Jockeys have been shooting their mouths out about for the past few weeks. But where is it? If you could just hear the big groan I let out each and every time another so-called "expert prediction" popped up on my YouTube feed, you'd know how I feel. Not to say that I know what's going to happen at all, but I think the action since my last update has erased the hopes I had for a monumental surge.
In this 4-hour chart, I have indicated the 4th lower high that the price line got rejected on. Notice the slope of that line. Even though it's well above the parallel trading channel that we had been stuck in, what concerned me was the fact that the slope of that line parallels the same slope of the overall trend. It's interesting that the previous support line just above the parallel trading channel acted as a brief support, but this could mean that it will flip to resistance. We notice that each stochastic peak has returned a lower high, and it appears that the overall direction in the bearish trend is still intact. As always, I think the action on the stock market could dictate where we go from here. With all the talk of a "V-shaped recovery" going straight to the garbage can, I think there is a real possibility that it is too early to know if Bitcoin will diverge and break away from the overall market. But we don't know.
A bullish breakout could still happen, but for now I think there will be no surprise if it does not go that way. The other possibility is that we could sail right back down to the lower boundary of the parallel trading channel, just like we have seen before. With all of the uncertainty that still looms over the US economy, and the fact that we are nowhere near a full recovery, it makes it hard to bank on the possibility of a massive shift towards the cryptocurrency sector as the Feds print the dollar into oblivion. I think we need to keep a realistic outlook on this, and fully realize that the size of the cryptocurrency market is just a grain of sand on the beach when compared to the market cap of the stock market, the banking sector, and the derivatives market. Sure, we would all like to see Bitcoin and the crypto market break us away from the tyranny of the Feds and the banking sector, but we are certainly still in the EARLY stages of development before something that monumental can occur.
So let's watch the birdie, and see how the next major move unfolds!
Not financial advice. I'm just a guy on the sidelines enjoying the show.
Carlton Flowers
The CyrptoPro
In this 4-hour chart, I have indicated the 4th lower high that the price line got rejected on. Notice the slope of that line. Even though it's well above the parallel trading channel that we had been stuck in, what concerned me was the fact that the slope of that line parallels the same slope of the overall trend. It's interesting that the previous support line just above the parallel trading channel acted as a brief support, but this could mean that it will flip to resistance. We notice that each stochastic peak has returned a lower high, and it appears that the overall direction in the bearish trend is still intact. As always, I think the action on the stock market could dictate where we go from here. With all the talk of a "V-shaped recovery" going straight to the garbage can, I think there is a real possibility that it is too early to know if Bitcoin will diverge and break away from the overall market. But we don't know.
A bullish breakout could still happen, but for now I think there will be no surprise if it does not go that way. The other possibility is that we could sail right back down to the lower boundary of the parallel trading channel, just like we have seen before. With all of the uncertainty that still looms over the US economy, and the fact that we are nowhere near a full recovery, it makes it hard to bank on the possibility of a massive shift towards the cryptocurrency sector as the Feds print the dollar into oblivion. I think we need to keep a realistic outlook on this, and fully realize that the size of the cryptocurrency market is just a grain of sand on the beach when compared to the market cap of the stock market, the banking sector, and the derivatives market. Sure, we would all like to see Bitcoin and the crypto market break us away from the tyranny of the Feds and the banking sector, but we are certainly still in the EARLY stages of development before something that monumental can occur.
So let's watch the birdie, and see how the next major move unfolds!
Not financial advice. I'm just a guy on the sidelines enjoying the show.
Carlton Flowers
The CyrptoPro