Bertie has been all over the place lately, a beast to trade. Three failures over the last week to achieve the 38,552 downside target of the pattern shown seems bullish, and it probably is, but bitcoin has been treacherous for the last few weeks for any trader who assumed that new highs were a given. That said, we can probably count on this vehicle to shred through enormous layers of supply between 44,000 and 50,000 when the time comes. It won’t be robinhoodies or Reddit types doing the buying, just a moment when the big boys who are already aboard pull their offers. For now, all we can do is watch the show. Most of the bitcoin traders who subscribe to Rick’s Picks have been spending their time in the Coffee House, where bitcoin has scarcely rated a mention in recent weeks. I should note that Friday’s news that China has banned all crypto transactions and crypto mining has had an astoundingly small effect on bitcoin quotes, at least so far. They’ve fallen 5% on the news, but that was less than the plunge that occurred when the Evergrande crisis hit full-bore a little more than a week ago. Is this the usual delayed reaction, a Wile E. Coyote moment for bitcoin until the Big Boys have had enough time to lay off risk on the rubes? Probably not, since the rubes themselves are typically on a hair trigger. We shall see.
BRTI – CME Bitcoin Index (Last:42,971)