BTC may be following a similar pattern to Stocks, just before they shot up again
If the current BTC chart looks somewhat familiar, it should...
The current price action in BTC looks pretty similar to something we were seeing in the S&P just a few weeks back.
Where the Index had run way up, consolidated sideways for a few weeks, and then ultimately broke out to the upside.
Does this chart look familiar?
(Source: https://stockcharts.com/h-sc/ui)
If you have been following my blog for the last several weeks you may recall this chart as we tried shorting SPY during this setup.
More on that can be seen here btw:
Unfortunately that setup ended up not working out for us as the S&P just kept grinding higher and eventually stopped us out right around the 200 day moving average.
However, pay special attention to the price action from about mid April to the end of May on that chart above...
The part where prices went sideways and looked like there was a decent chance we would roll over and try to fill a gap to the downside.
It's very possible that we could be seeing something very similar in BTC right now.
Check out the chart of GBTC (bitcoin investment trust), which will be our bitcoin proxy for now so we can use the same charts for comparison:
(Source: https://stockcharts.com/h-sc/ui)
Do you see any similarities?
Pay special attention to the price action from about mid-May until now...
It almost looks like a similar sideways consolidation period that we saw with SPY, and it looks like it could just be lagging by several weeks.
If that is indeed the case, one might expect bitcoin to breakout to the upside from this current consolidation period within the next couple weeks.
This seems like a plausible resolution to the current market activity based on what we saw with SPY just a few short weeks ago.
One thing to keep in mind though, is that if stocks fall out of bed and start to get volatile, it is possible that they drag bitcoin down with them as well.
So, we may need stocks to mostly "behave" for this breakout of the consolidation range (to the upside) to take place.
Stay informed my friends.
-Doc
Posted Using LeoFinance
