Watch The Animal Spirits: Bitcoin And Ethereum As Market Compasses
Tim Knight | May 16, 2022 07:30AM ET
I’ve mentioned this frequently, particularly on my tastytrade show, but I want to stress again my theory that cryptocurrency markets—particularly the big boys Ethereum and Bitcoin—are going to be very vital in monitoring how this equity bear market unfolds.
Indeed, it’s pretty much the only useful mechanism during weekends for gauging market psychology when the stock bourses are otherwise shuttered.
Here, as of Monday morning, is Ethereum. Take careful note of how feeble its recovery from the Terraluna disaster was, and more importantly, how spectacular its topping pattern is. We’re talking Game Over level charts here, people.
Exactly the same can be said of Bitcoin. I wouldn’t be at all surprised to see us take out last week’s lows before this week is through.
I was actually concerned that the counter-trend bounce might go on for an agonizingly long time (measured on the Tim Impatient Scale, that would be about two weeks), but perhaps not.
These charts mean business, and they should be respected. Or you could just keep listening to Barron’s, which is owned and run by permabulls.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.