Could Euro Stoxx and Bitcoin Signaling Warning?
Well that was an eventful weekend. With less than 10 hours to go before the Bitcoin halving, the cryptocurrency markets are attempting a set up for a relief rally. In other news Federal Reserve Chairman Jerome Powell will speak on the current issues facing the U.S. economy later this Wednesday. Heading into this speech, it is difficult to bet against the market. I am conflicted though. There are warning signs. The Bitcoin and Euro Stoxx 50 charts could be providing hints.
Relief into Halving?
Over the weekend Bitcoin suffered a set back as it attempted a breakout above 10,0000. The weekly close will likely result on the rally officially ending. The proof: The weekly candle (not shown) ended in a doji reversal on spot exchanges and exhibited the highest volume since the March 16 weekly candle. Furthermore, the two month old bullish ascending trendline that supported that rally was finally breached (see daily chart below).
Price can absolutely rally in the interim. A reason would be the ridiculous CME Gap that many traders have already pointed out. See the 4-hour Bitcoin Futures CME chart below.
The picture on lower time frames is an absolutely mess unless you turn the noise off. Here I have the 1-hour line chart of Bitcoin. The king of crypto is exhibiting signing of an inverse head and shoulders pattern reversal. Given that the pattern is on lower time frames, I give it a lower probability in completing and/or reaching its measured target. Trade this pattern with caution, as the risk is still to the downside.
Bitcoin is poised to rebound from whatever low it posts in the short term. So it is very difficult for me to be bearish on the short term. However, that being said I will continue to emphasize that Bitcoin could be in for a lengthly consolidation prior to making any new highs. BTFD and sell the rallies. Bias: BTFD.
Europe Showing Sign of Weakness
Above is the chart of the Euro Stoxx 50 (EU50), an index that is made up of the 50 largest and most liquid stock in the European zone. After a 50% rally off the March low, the EU50 has not been able to reclaim its high. Europe could be signaling a warning for stock market investors and traders that the high may be in. Its a chart to watch! Bias: Bearish.
Stars Aligning for Rally to End
Not calling any top here, but I do think it is time to rethink the upside on the tech driven rally. With Bitcoin and now Europe exhibiting weakness, the warning signs are there that the rally is nearing an end. Until then, I'll be playing the relief rallies and promising set ups. Happy trading and talk to you all soon!
Relief into Halving?
Over the weekend Bitcoin suffered a set back as it attempted a breakout above 10,0000. The weekly close will likely result on the rally officially ending. The proof: The weekly candle (not shown) ended in a doji reversal on spot exchanges and exhibited the highest volume since the March 16 weekly candle. Furthermore, the two month old bullish ascending trendline that supported that rally was finally breached (see daily chart below).
Price can absolutely rally in the interim. A reason would be the ridiculous CME Gap that many traders have already pointed out. See the 4-hour Bitcoin Futures CME chart below.
The picture on lower time frames is an absolutely mess unless you turn the noise off. Here I have the 1-hour line chart of Bitcoin. The king of crypto is exhibiting signing of an inverse head and shoulders pattern reversal. Given that the pattern is on lower time frames, I give it a lower probability in completing and/or reaching its measured target. Trade this pattern with caution, as the risk is still to the downside.
Bitcoin is poised to rebound from whatever low it posts in the short term. So it is very difficult for me to be bearish on the short term. However, that being said I will continue to emphasize that Bitcoin could be in for a lengthly consolidation prior to making any new highs. BTFD and sell the rallies. Bias: BTFD.
Europe Showing Sign of Weakness
Above is the chart of the Euro Stoxx 50 (EU50), an index that is made up of the 50 largest and most liquid stock in the European zone. After a 50% rally off the March low, the EU50 has not been able to reclaim its high. Europe could be signaling a warning for stock market investors and traders that the high may be in. Its a chart to watch! Bias: Bearish.
Stars Aligning for Rally to End
Not calling any top here, but I do think it is time to rethink the upside on the tech driven rally. With Bitcoin and now Europe exhibiting weakness, the warning signs are there that the rally is nearing an end. Until then, I'll be playing the relief rallies and promising set ups. Happy trading and talk to you all soon!
