According to the daily chart below, Bitcoin bears have finally broken prices down from the consolidation box. Notable still is that momentum is already deeply oversold with a major catalyst – in tomorrow’s FOMC meeting, just around the corner.
The conditions are ripe for bears to take the price down to the upward trendline and 200-day MA. Prudent traders holding long from 25k still have a chance to make some profit. That said, I also think the current setup is extremely conducive to producing a"wick out" on the weekly timeframe.
The below-left side is an example of a"wick out" on the weekly timeframe in a publicly traded security, and the Bitcoin weekly chart is on the right. The consolidation patterns are very different, but the principle of the wick out is the same, and I can see it happening on this week’s candle in Bitcoin.Follow J_GidaroDasilva jdasilva@kitco.com www.kitco.com