By Jim Fredrickson
Bitcoin may or may not have ended it’s bear market (as we believed last week), but clearly the bull market has not yet begun in earnest. The market had been behaving quite nicely after 3/31, but stumbled hard at a 3rd arc pair and has been hovering just a bit higher than the low of the end of March. So, we must confess that it has been a stressful time for us as well as many others out there.
“Should the low break, we will be taking money off the table to wait on the sidelines; watching to see what happens next…”
“There is reason to suspect that the current weakness will continue until 4/15. The tax man is frightening many coin traders into weakness and submission.”
It is troubling however, that price just broke downwards when it hit that 5th arc pair (red). But as long as the 3/31 low holds we are still in good shape, save for the stress this market continues to impose upon us.
Should the low break, we will be taking money off the table to wait on the sidelines and watch to see what happens next…
Bitcoin Cash is following Bitcoins lead. It rallied well from 4/1, but has since fallen to re-test the 3/31 low which so far has held, though that is not terribly reassuring.
We can see 5th arc pair support is fast approaching though, so we will be slow to take money off the table here, unless that arc of support breaks. We will see…
I am sounding like a broken record now. Litecoin is behaving precisely as btc and bch have since 3/31. The lows have held, but there is no momentum or volume to speak of. Everyone seems scared to take a long position, or is very quick to scalp a few points if they can.
Our suggestion is to wait on the sidelines for a bit you are currently out. There doesn’t seem many compelling reasons to think we need to take a position quickly.
Remember that the author is a trader who can and does make mistakes from time to time. Each trader must assume full responsibility for their own trades, based on his/her own due diligence.