The one asset class that I really want to focus on today is Bitcoin and cryptocurrencies in general, which really crashed today. Now that doesn't mean, I think the bottom is in. It's not, but we certainly got. A short term capitulation type sell off, which is something I have been anticipating and warning about for the last couple of weeks on this podcast.
As I've been watching Bitcoin carving out a classic head and shoulders top, and to me, there was an extreme amount of complacency. In the crypto community with respect to this ominous technical side. And it seemed pretty obvious to me that we were going to get a pretty big sell off. And we did. We got the whole thing today.
In fact, the big drop happened between about I think eight 30 and nine o'clock in the morning. Eastern time. That's where Bitcoin fell from about 38,000 to about 3000 within a half hour. That is a 20% decline in one half an hour. I mean, one thing that today's action should do once and for all is settle the debate as to whether or not Bitcoin.
Is a safe Haven store value, inflation, hedge like gold, or whether it's a risk asset. And today Bitcoin followed all the risks assets lower. In fact, it probably led the risks assets. Lower gold was up about 15, 16, $17 early this morning. Now it initially sold off early in the morning. In fact, I think gold sold off even before Bitcoin, but when Bitcoin started to crash in that half hour, Gold came back from about a 10 or $15 loss into the black.
And ultimately it had about a $17 rally. It ended up surrendering those gains later in the day after the release of the fed minutes, which I'm going to get to in the second half of this podcast for now, I want to continue to talk about the crypto carnage. But crypto Bitcoin went down with risk assets.
In fact, people seem to be rotating into gold as a hedge against the weakness in crypto, which is what I have been saying all along that the people who own crypto and who are speculating in crypto should try to hedge their crypto portfolio by buying gold because gold is a safe Haven store value. It can rise when other assets are falling Bitcoin again, proved today.
It is not non-correlated or uncorrelated. It correlated perfectly with all these other high-risk stocks that were crashing except Bitcoin crashed much more. Now it has recovered a good chunk of those losses. The low was just over 30,000 as I am recording the podcast we're trading between 38,539,000.
The highest we got on the snapback was a little over 40,000. The interesting thing was. The rally couldn't carry it back to 42,000, which was the spike low, I think from yesterday. So the people who bought that dip and who thought they were so smart? Well, we went lower today. Now. Of course, a lot of people are excited.
About the fact that we recovered from 30,000 and that's all everybody is talking about. You see, it's recovered buying the dip works well, buying the dip work yesterday. At least that's what people thought until we had a bigger dip today. And today's dip buying is only going to work until we take out the low, which we will do.
Now, interestingly enough, this collapsed down the 30,000. Really fulfills the objective of the head and shoulders top. If you actually measure the neck line, this is about what I was looking for to complete that pattern. So we could easily go sideways for some time digesting this big sell off. But I don't think that this completion of this head and shoulders top means that the bear market is over.
And a new bull market is going to be born and we're going to be back above 65,000 in the next few weeks for the next few months. I really doubt it because if you look at the technical damage really done to the Bitcoin chart, and that's really all Bitcoin has is technical analysis because there are no fundamentals, cause there's nothing fundamental to analyze.
It's all technical ether actually had a worst day than Bitcoin ether got down below 2000, I think 1800 and change. It was above 4,000, just the other day. I mean, so all these currencies. Uh, just in a bloodbath, not currencies. I really shouldn't even call them currencies. They're tokens. They're a digital tokens.
But the point I just made earlier is that the debate should be settled. Now nobody could look at the type of action that we had today in Bitcoin and go away with the belief that if they're buying Bitcoin, they're buying something safe, they're buying something stable. They're buying something as a hedge, you know, a safe Haven.
None of that is true. This is pure gambling. In fact, the funniest part about today's rally off the lows is the catalyst was none other than a Elon Musk tweet. You would think the crypto community had enough of Elon Musk. No, whenever he tweets out something that's pro Bitcoin, they love him again, because this is all this market has.
It lives and dies by an Elon Musk squeak. And that means Elon Musk can destroy this market. Anytime he wants all the S to do is tweet something out. Why would you want to put your life savings into a crypto asset and just hope and pray that somebody is unstable as Elon Musk just doesn't decide to completely wipe you out with an ill time to eat.
And all it takes is one or two words or memes. He just can tweet out an emoji. And, and you're done in Bitcoin. In fact, the tweet that launched a five or $6,000 rally in Bitcoin, because I think we're around 35,000. So we had bounced a bit off the lows before Elon Musk posted his tweet. And all he tweeted was Tesla has and then an emoji of a diamond and then an emoji of a pair of hands.
In other words, diamond hands. And what that's supposed to mean in the crypto community is you have strong hands, right? Because diamonds are strong. You have strong hands, which means you're holding you're hoteling. You're not selling your Bitcoin. So the fact that Elon Musk tweeted out the fact that Tesla is potentially holding onto its Bitcoin and not selling despite the collapse, this sparked a rally.
Why this should spark a rally. It makes absolutely no sense because number one must didn't actually say anything with this tweet. I mean, all I did is tweet out a emoji of a diamond and a pair of hands. You think that's going to stop Tesla from selling their Bitcoin, if that's what they want to do. I mean, I don't even think that somehow.
Inside information or fraud. I mean, Elon Musk could always say what I tweet out a diamond and a pair of hands. What's the big deal. He could easily be selling Bitcoin despite the fact that he tweeted out diamond hands. But let's assume that Elon Musk is being honest. And Tesla hasn't sold. Why is that bearish?
Because it means he's still has the Bitcoin to sell. I mean, if the market has crashed by 50% and Musk, hasn't sold us a Toshi since the original 10% sale that he talked about, and you think this is bullish, that's bearish because HETI already sold. At least the market would have absorbed a selling and now maybe it can move forward.
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