Blocksmith Says: BTC Headed Down But Needs to Settle First

29 July 2022

Bitcoin has powered back into the upsloping corrective pattern that started 18 June and travelled a lot higher than expected. The top of the channel is US$25,200-ish and very overbought – that is where I am focused now. 

We are seeing the same sort of pattern in key US technology stocks as well as the broad market. This is the pain trade, the market is seeking out shorts and smoking them and then when it’s had enough of that, it should reverse down again. Because the overall feel of it all is that of a bear market rally. These, however, can be very convoluted and messy and take a lot longer to fail than one would think. 

Preferred view: still looking down, but it needs to settle first. 

Christopher Grafton
Christopher Grafton

Chris has been working in the markets for over 15 years variously as a broker, analyst and researcher. He is the author of a well-known book on Hurst cycles analysis, and runs his own market analysis software platform on Bloomberg. He’s also a keen student of both the cello and Brazilian Jiujitsu.

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