There’s a saying in markets. Bear markets don’t let the bulls out or the bears in. Said differently, bear markets, by their nature, mean that virtually everyone loses money.
Never has this been more the case in Bitcoin (BTC) so far this year. Bitcoin (BTC) has hurt everybody using classic chart patterns. If people would buy on the breakouts of various triangle patterns, they would soon be stopped out by very sharp declines. Shorts got squeezed often with sharp spikes up, only to see Bitcoin (BTC) collapse soon after (Figure 1).
This type of movement has Bitcoin (BTC) caught in a black hole of despair and depression. That said, this morning’s rally does have promise.
Given crypto prices seem low on a visual basis, it’s tempting to want to go with the rally. That said, there has to be proof that the pattern in Figure 1 is broken before bulls can have any confidence. If today’s rally fails, selling could be sharp as damage could be done to the crypto market’s psyche. It would be like descending into a black hole in space — total darkness.
Bottom Line: The Crypto.IQ Trading Desk has not gotten caught in any of the traps shown in Figure 1. Not only that, but they have been adept at winning and making money when so many are losing. If there was ever a time to work with professionals, it’s now. If and when the market turns up, I am sure they will catch it and help make money if Bitcoin (BTC) escapes the black hole.
Join me there.