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Bitcoin receives "all clear" from VIX and Dollar dump!
#btc #bitcoin #crypto #cryptocurrency #dxy #dollar #vix
So, I've been pretty clear that disinflationary data has been coming in hot and heavy, and that at some point, the fed will have to reconsider its current extremely hawkish strategy, pivot, and become more dovish. QT will become QE.
Inflation has topped.
The dollar has topped.
The VIX will drop.
The markets will pop.
For one last blowoff top.
Somebody bust that rhyme for me!
Most of the above appear to be taking place. Now we wait for the Fed to pivot and the blowoff top to come to fruition.
In the meantime, let us take a look at Bitcoin from a technical perspective. Triangles, triangles, triangles.
You will observe that after breaking out of our year-long descending wedge, the price action remained underwhelming, as it has since June. From a technical standpoint, there are two big reasons for this:
#1 - Since June (with the exception of a few weeks) we have remained rangebound between $18,700 and $22,000.
#2 - We hit a resistance trendline (BLACK descending TL) that also started in June AND formed the topside of another triangle we existed inside of since the beginning of September. Now, many traders were claiming this triangle was bearish with a probability ratio of 54/46 to the downside. Typically, this might be the case. My objection to this statistic became that this particular triangle poked through our RED resistance zone (now support) and outside of the year-long descending wedge; therefore, I was bullish this triangle instead of bearish.
Fast forward to today. BTC has, in fact, broken to the upside and the target appears to be that descending 200 day ma.
Now, if you are a follower of mine, you'll know that I entered a 5x long position at $18,300. We are at over 50% profit thus far. I've adjusted my SL once to $18,500 putting me quickly in the green for this trade even with my SL triggered. I will now be moving this up again to our critical support area of $18,700. Should we remain above our 50 day ma tomorrow, I will move it yet again to around the $19,200 level.
Congrats to those of you who are following me in this trade!
More to come,