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.
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.