BTC WEEKLY CHART: "The Panic Zone" It's F'UglyThis has to be the ugliest chart I've seen in a very very long time. Where to begin...
The top was put in when the US SEC ruled against allowing the Winklevoss twins to create a BTC backed ETF. They had spent the last 2 months accumulating asset to back the ETF and then dumped it all at once when it was obvious they should put their money somewhere else. That broke the steep solid red trend line I am calling the W.Voss trend.
Price has dropped down to support at the second red dot trend I am calling the Chinese Insider trend. Price bounced off the trend and now all the helium has come out of the balloon and price has dropped back down creating a giant $120 sized "Dead Cat Candle". A DCC is a harbinger of doom to the Chinese Insider rally. The fundamental here is that the PBoC , China's SEC, has shackled mainland based BTC exchanges creating all sorts of problems for the Chinese investor to divest. On top of that, OKcoin is teetering on extinction. I would bet my valuable wooden nickle collection that the dotted red trend is kaputski.
That leaves the 2 year rally as the only real long term support on the chart down around $850. So here's the real warning to y'all. The counter trend indicators are screaming SELL SELL SELL. The volume has been dropping for nearly 2 years. MACD is about to crossover to the dark side at its highest crossover point since the blow off top in early 2014. The Stochastic oscillator is showing that the current decline still has room to drop. It loosely predicts a decline to the feared PANIC ZONE. That implies a 2 year trend break and then a precipitous drop.
Fundamentals: Bitfinex issued an announcement about a grand fork in the BTC hash chain. They and about 12 other exchanges differ with the major miners about how to proceed. Bitfinex leads the market in hedging their bets allowing speculation on the future of each fork. In the mean time investors are bailing into other cryptos. Etherium has taken off, up 300% or more along with several other winners. Not all the cryptos are winners. Litecoin continues to lose value. All of this indecision along with the government thugs have cast a huge dark cloud over all of us.
Does this deter me? Not one bit. I'm looking to snatch up some cheap coin. I'm gonna wave my cowboy hat and ride this hydrogen bomb all the way to ground zero. YeeeeeHaaaaahhh.
