Bitcoin punishes Bulls again
Once again, Bitcoin (BTCUSD) believers have had their faith tested by a pretty swift, and comparatively severe negative reaction to recent gains. A year ago, Bitcoin was trading around $4,600. Some, people bought below that level, but the ‘crypto rush’ didn’t really get going until the end of November 2017 when it smashed through the $10,000 barrier. Anyone who bought into that rally who is still hanging on is doing so more in hope than faith. Since reaching a peak of $19,500 (or thereabouts, very few people agree), every dip has been followed by a half-hearted rally that has served only to tease the Bulls with false hope. What we have seen is a repeated pattern of falls, weak rallies, and then a surrender of recent gains to a new (short-term) low before repeating the pattern. Whether you want to buy dips, sell rallies or both, it is the flexible traders that are making the money. The HODL gang are having a pretty miserable time of it waiting for a rescue that is never going to come as either their capital or their profits are eroded. Some of the BTC end of 2018 value forecasts from January are going to look pretty embarrassing in a few months time. Our bearish view remains unchanged, any close below $8300 maintains the negative trend.