With the crypto market seemingly still in the grip of enforcement-induced fear perhaps Bitcoin is getting ready for an explosive move.
Sideways and downThe crypto market is relatively quiet, as altcoins continue their bleed out due to the highly uncertain regulatory atmosphere, and bitcoin is still moving sideways and down in a descending channel.
All quiet on the crypto front.
It’s at times like these that investors should be studying the tea leaves and watching the stars with far more avidity than normal because a sudden upheaval in the market would likely catch many unawares, and there are increasing signs that something big could be about to commence.
With the SEC suing all and sundry, most retail investors have headed for the hills, convinced that they are not going to return until the outcomes from all of the enforcement actions are known, and it looks like it is safe to return.
However, this is not how money is made. It is well known that the best time to invest is when there is blood in the streets, and there must surely be some of the red stuff washing over the kerb right now.
Major players moving inBig players are just getting ready to enter in the form of Blackrock and Fidelity and they don’t get any bigger than this. Blackrock already filed its petition for a Bitcoin Spot ETF, and Fidelity is set to either file its own, or make a bid for the Grayscale Bitcoin Trust.
UPDATE: @DigitalAssets and @Fidelity is about to make a seismic move in crypto via both $BTC and $ETH. Sources expect Fidelity to either make a bid for @Grayscale or quickly launch their own spot #bitcoin ETF. One or both are coming, soon. **Blackrock and Fidelity will own…
— Andrew (@AP_Abacus) June 18, 2023Juicy technicals
Meanwhile, bitcoin is starting to look quite juicy from a technical chart perspective. A possible cup and handle is a long time in the making, with the cup starting in June of 2022, coming to a top last April, and now making its handle downwards. The measured move for this cup and handle could be in the region of $45,000.
On the 5-day time frame the price is holding nicely at the top of the Gaussian Channel, and on the weekly time frame the Stochastic RSI, a good momentum indicator, is coming down nicely, to be followed by a cross up perhaps in the next 2 to 3 weeks.
Of course, everything isn’t just going to be upwards. Bitcoin may well sweep lower and test the support at $24,260 where it can also find trend line support plus the middle of the Gaussian Channel on the weekly time frame.
Should all the above be wrong then a far more extensive bear market would come into play. Whatever happens, bitcoin is hard money you can own, spend and save without any government or bank say-so. That is certainly worth much consideration.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
