Every time BTC has done this in the past, it crashed.
This is a very simple observation analysis. If you'd like to read a more in depth and back dated analysis on why BTC might make a big drop, see the two posts below.
Here's the simple observation. One anyone can make.
In all instances we can see in the last 10 years of BTC trading, when there's been a big bearish engulfing candle at the top of a parabolic move, it's crashed.
This signal appears to have a 100% hit rate.
Now, don't get me wrong - I'm not saying it's 100% it will happen. That's not how anything works.
All I am saying is the warning signs at this point could not be more obvious.
There's extreme tail risk in BTC now.
Along with a massive confluence of risk off signals.
Here's the simple observation. One anyone can make.
In all instances we can see in the last 10 years of BTC trading, when there's been a big bearish engulfing candle at the top of a parabolic move, it's crashed.
This signal appears to have a 100% hit rate.
Now, don't get me wrong - I'm not saying it's 100% it will happen. That's not how anything works.
All I am saying is the warning signs at this point could not be more obvious.
There's extreme tail risk in BTC now.
Along with a massive confluence of risk off signals.
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