TraderJared

Bitcoin (BTC) likely to trade lower for a few months

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
I haven't traded cryptocurrency in a long time, but my interest in it has been renewed lately as I'm convinced the global economy is heading for a severe recession in the immediate future, and I believe crypto can perform well in such an environment and should be part of your portfolio, along with gold . However, what concerns me over the coming few months is the long term chart for Bitcoin .


Looking at the monthly chart you can see how in the last 3 months a high was made, it was tested, it was retested, and it failed each time. You can see how three long shadows have formed over the prior 3 months of candlesticks . I see this a lot in forex currency pairs and it's generally a sign that momentum has stalled out and a leg lower is in the cards. I would not want to be holding Bitcoin if it falls under $10,000 or if we get closer to the end of the month and this chart formation remains in tact. I believe it's likely Bitcoin trades lower over the coming months until it becomes clearer that a recession is inevitable, in which case I would look for a leg higher in cryptocurrency, gold and treasuries, and begin shorting corporate debt and equities.
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