The Bitcoin crash is not a surprise. The levels of stupidity that were recently reached were on display for all to see. I’ve shared several posts from the last few weeks that led up to this crash. I’ve also shared today’s post on BTCUSD so that you know the levels to track. Bottom line, I don’t think the drop is complete.
May 6, 2021
WHAT IS HAPPENING?
No bubble here…the coming crash in crypto is going to look like the crash after Tulip mania in 1636/37.
May 17, 2021
DUTCH TULIP BUBBLE WAS ALSO DURING A PANDEMIC
The Dutch Tulip bubble also occurred during a pandemic. One popular narrative for tulip price behavior blames excitable Dutch merchants who had nothing better to do than sit around in taverns bidding up the price of exotic flowers (global trade was effectively in “lockdown” then)…sound familiar?
BTCUSD closed right at the noted 44000 level today. Big spot! I lean towards the downside following completion of the massive top that has been forming since February. The next downside level of interest is 32000 (or so).
BTCUSD 4 HOUR
BTCUSD tagged the 32000 level (low was 30000) and snapped back but I don’t think this is the low. Notice where the snap back rally stalled…right at the underside of the former channel line (magenta channel). This is the ‘slingshot’ setup that I’m so fond of. If strength resumes then VWAP levels to know for resistance are 44400 (2021 VWAP) and VWAP from the top, which is currently 50000. The ultimate support is 19666, which is the 2017 high and the 25 line of the channel that we’ve been following. Recall that we turned bearish in February at the 75 line because the rally materialized at the 25 line. This is knows as median line symmetry (see daily chart below)!