Bitcoin continues to not act all that well, at a time when it’s become a non-stop topic of discussion in the media these days.
Prices are lower than they were back at the January peaks, and we’ve seen this pattern of higher highs now morph into that of lower highs as consolidation has taken hold. While this doesn’t have to lead straight lower and could just be consolidation that leads back to highs, it’s becoming increasingly more unlikely at a time when monthly RSI reached over 90 last month, equaling peaks seen back in 2017 and 2013.
This article was written heading into the weekend…
Bottom line, 47k should serve as a stop for those who wish to trade BTCUSD, while long-term “Buy-and-Holders” should get a chance to buy it lower into the Summer. To help BTC regain its momentum, we’ll need to see a quick move back over 60k in the days to come. The weakness here has largely given way to the formerly “laggard” coins starting to bounce and play catchup. However, providing one keeps tight stops on weekly lows, aggressive traders might still try to play for a bounce into late May/early June.
Most cycles though, based on my cycle composite from the Foundation of Cycles show a decline into June, and the potential for further weakness into the fall, which might come about given potential upcoming regulation or the perception thereof. There should be opportunities to buy dips by end of year on pullbacks.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.