I admit I haven’t been tracking bitcoin very closely for a while. The energy behind it seems dead and the long-promised institutional investors keep not materializing. On top of that, the futures that I had used to short bitcoin has been discontinued.
However, a pattern is a pattern. And bitcoin has historically been the most pattern-perfect asset I can remember seeing–both on the way up and the way down.
One of my subs asked me about the current set up, so I took a look.
Guess what? It’s bullish. It says nothing about the fundamentals. It could still be a dying asset. It could still be a bubble unraveling. But the pattern has gone from bearish to bullish. Higher-to-flat highs and higher lows is a bullish wedge (at least that’s what I call it). It is the opposite of the bearish wedge we saw in bitcoin from June to October last year. Bitcoin fell 50% on that drop.
The difference between a bullish and bearish wedge couldn’t be any cleaner than in this chart. Totally textbook.
Here’s the chart:
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