NASDAQ to touch 12200 this week?As charted.
After bearish engulfing candle at ATH, some correction is expected to 12200.
Whether this is the mid/long-term top needs to be validated in the coming weeks.
Drjlt
Dow Jones wants to crash, but will the money press allow it?There's little doubt that the market is kept afloat by money printing. There're a couple of issues, however, in the medium term:
1. As you print more money to keep the bubble growing, it takes more money printing to sustain.
2. As you continue to accelerate money printing, the fundamentals start to turn from bad to worse.
While the media have successfully kept the public's attention on the large monopolies that have benefitted from lockdowns, the crumbling of the working class does not bid well even for those monopolies. In essence, it's exactly what Karl Marx predicted: the monopolies are so successful that they're killing off their customer base.
In the long term, this type of money printing can have only one end. It has always happened in history.
The chart now shows a tendency to cover the gap at 28500. Although they'll very likely inject another trillion to keep it going a bit longer at that point.
NEO exhaustion / reversal incomingAs charted. If confirmed by a downward penetration of $20 (with a retest after bouncing off the 50D SMA), the first target is $15.
Bitcoin back to earth soon?It's widely known among Bitcoin users / hodlers / supporters / speculators that a big part of Bitcoin's appeal comes from the application of the poorly formulated "modern monetary theory", not only by central banks, but also by voters demanding free money.
This is IMHO a dangerous idea, even though I'm more of a Keynesian: Just because governments control the money supply and do not suffer from immediate restraints that individuals do does not mean money printing can carry on forever. I'm thinking about writing on this in an upcoming blog (see my profile for links).
Back to Bitcoin: I have argued before that Bitcoin cannot be the solution to this global problem. However, it can attract speculation and can even play a role in the financial markets.
Still, based on technical reasons, I'm of the view that this bull run is exhausted. This is evidenced by the smaller bull run by alt coins in recent weeks. I have three targets for Bitcoin's upcoming drop, with 16k as the intermediate target (see chart).
I think it'll likely fall under 10k towards the end of 2021, but that's too far into the future to be a meaningful discussion. The next bull run is likely to happen sooner rather than later, with 2023 be my guess.
