{"id":18966,"date":"2021-09-20T07:30:06","date_gmt":"2021-09-20T11:30:06","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18966"},"modified":"2021-09-20T07:30:06","modified_gmt":"2021-09-20T11:30:06","slug":"crypto-bulls-wont-want-to-hear-this","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/crypto-bulls-wont-want-to-hear-this\/","title":{"rendered":"Crypto Bulls Won\u2019t Want to Hear This"},"content":{"rendered":"

Bitcoin is setting up for another big move.<\/p>\n

The “King of Cryptocurrencies” has been stuck for the past several weeks inside a tight trading range between $45,000 and $50,000 per coin.<\/p>\n

It closed Friday near $47,500 – just about in the middle of its range.<\/p>\n

And, it looks ready to break that range, in one direction or the other, soon…<\/p>\n

Take a look at this chart…<\/p>\n

\"Chart\"<\/div>\n

Notice how all of the various moving averages are now coiled together. This tells us there’s a lot of energy built up in this chart. And, that energy will fuel the next big move.<\/p>\n

Also, notice how this chart displayed a similar setup twice before in 2021 – in May and in July.<\/p>\n

We pointed out the potential for a big move in May<\/a>. And, we suggested that move would be to the downside.<\/p>\n

The bitcoin stocks like Riot Blockchain (RIOT), MicroStrategy (MSTR), and Tesla (TSLA), were behaving poorly. We figured the stocks were discounting future weakness in bitcoin.<\/p>\n

Two months later, the price of bitcoin had been cut in half.<\/p>\n

In July, we once again pointed out<\/a> the potential for a big move. This time, though, the crypto stocks were acting well. They had been rallying even as the price of bitcoin was falling. That seemed like a bullish<\/a> sign. So, we figured bitcoin was gearing up for a rally.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Since then, the price of bitcoin gained nearly 70% between its bottom in July and its recent peak.<\/p>\n

As we noted, though, the price has been stuck in a tight range for the past few weeks. The moving averages are now coiled and pointing to a big move. The only question is…<\/p>\n

Which direction will it break?<\/p>\n

The “crypto bulls” aren’t going to want to hear this. But, the bitcoin stocks are suggesting the next move is lower.<\/p>\n

Just take a look at this RIOT chart…<\/p>\n

\"Chart\"<\/div>\n

RIOT is a bitcoin mining company. While bitcoin is trading about 5% below its recent high, shares of RIOT are down more than 20% over the past month.<\/p>\n

And, how about this chart of MicroStrategy (MSTR) – the enterprise software company that raised money by issuing bonds, and then plowed all of that money into bitcoin…<\/p>\n

\"Chart\"<\/div>\n

MSTR is also down about 20% from last month’s peak.<\/p>\n

If the stocks do indeed lead the price of bitcoin, then the recent action in RIOT and MSTR suggests bitcoin’s next big move will be lower.<\/p>\n

The action in Tesla (TSLA), though, is suggesting something different.<\/p>\n

Take a look…<\/p>\n

\"Chart\"<\/div>\n

TSLA – the electric vehicle manufacturer that made more money in one quarter by owning bitcoin than it did in its entire lifetime by selling cars – is about 5% higher today than where it was trading last month.<\/p>\n

So, unlike in May and July when we had a unanimous consensus – the bitcoin stocks are in disagreement here. Two out of three are suggesting the next big move will be lower… one suggests it will be higher.<\/p>\n

We can’t have quite as much confidence in this prediction as we had the two previous times this year. But, it seems to me the odds favor a move to the downside.<\/p>\n

We should know for sure within a few weeks.<\/p>\n

Best regards and good trading,<\/p>\n

\"signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

Do you follow the crypto market? If so, do you think this kind of setup will move bitcoin lower?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin looks ready to break this range…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18966","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18966"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18966\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18966"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18966"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18966"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18966"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}