Bitcoin and the crypto market has had several "funerals" before, where pundits would scoff at the idea, call it a pyramid scheme, and basically calling bitcoin investors either scammers or suckers.
In fact, we recently heard such narrative before price rebounded from around $5800 to $6800.
But now, we area likely going to see another bearish swing that might get down to the $5000, and we should get ready for more obituaries like the one above.
BTC/USD 4H Chart
- The 4H chart shows a bearish market, that has been consistently breaking consolidation patterns and continuing the recent bearish trend.
- This week, price broke below the rising wedge pattern, which signals more downside, or at least a challenge of the $5800 area, the June-low.
- If price rebounds sharply from here $6100 and pushes above $6500, THEN we could seeing an inverted head and shoulders pattern. This is the scenario that would keep the bullish reversal outlook alive.
- Otherwise, we are still in a bearish mode, and might even see price push below the June-lows.
- The daily chart below shows how 2018 has been essentially been a year where the 2017 hype has been deflating.
- Now, as price approaches $5000, bitcoin would be back at the levels right before the 2017 China and Jamie Dimon "FUD". Basically, at the time, China was "banning" bitcoin, followed by Jamie Dimon calling bitcoin a 'fraud'. (FUD = Fear Uncertainty and Doubt)
- China is shutting down domestic Bitcoin exchanges (The Verge)
- Jamie Dimon Slams Bitcoin as a 'Fraud' (Bloomberg)
- There was a 40% dip from $5000 after this, but price rebounded from $3000.. Next thing you know (without any significant corrections, bitcoin came up to around $20,000.
- Because $5000 marked a key pivot of resistance that was wiped out in 2017, it would be interesting now to monitor it as a support.
BTC/USD Daily Chart