We moved to a negative stance in Bitcoin (BTC) just in time.
Right now, we see Bitcoin (BTC) resting near a point in June, which was the takeoff point for the final leg of the rally. While this level seems to provide helpful visual support, we don't think it qualifies as a good horizontal support point. Realistically, the next meaningful horizontal support point comes in at 6000. The fact there is horizontal support at 6000 is a good thing because the next good diagonal support comes in at 4000.
While everybody may be engaging in coming up with ridiculously low downside targets for Bitcoin (BTC), we prefer a different approach. With stocks near all-time highs and more rate cuts coming, there is no reason for equities portfolio managers to own Bitcoin (BTC) into the end of the year. So, the outlook for Bitcoin (BTC) is negative as long as the outlook for stocks is positive.
Bottom Line: More than likely traditional portfolio managers are going to sell out their Bitcoin (BTC) and take their losses. This sets up at least one more leg down.
Right now, we see Bitcoin (BTC) resting near a point in June, which was the takeoff point for the final leg of the rally. While this level seems to provide helpful visual support, we don't think it qualifies as a good horizontal support point. Realistically, the next meaningful horizontal support point comes in at 6000. The fact there is horizontal support at 6000 is a good thing because the next good diagonal support comes in at 4000.
While everybody may be engaging in coming up with ridiculously low downside targets for Bitcoin (BTC), we prefer a different approach. With stocks near all-time highs and more rate cuts coming, there is no reason for equities portfolio managers to own Bitcoin (BTC) into the end of the year. So, the outlook for Bitcoin (BTC) is negative as long as the outlook for stocks is positive.
Bottom Line: More than likely traditional portfolio managers are going to sell out their Bitcoin (BTC) and take their losses. This sets up at least one more leg down.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.