Keep an Eye on This Bitcoin Chart

Bitcoin is STILL in a precarious position. [Jeff Clark's Market Minute]( Keep an Eye on This Bitcoin Chart By Jeff Clark, editor, Market Minute Bitcoin is STILL in a precarious position. The King of Cryptocurrencies hasn’t done much since we [last looked at it in late April](. Bitcoin was trading near $64,000 at that time. It closed near $64,000 last Friday. So, the “Sell in May and go away” philosophy we applied to Bitcoin hasn’t quite panned out yet. But, the setup for a seasonal decline is still intact. Take a look at this updated chart… [(Click here to expand image)]( The squiggly, colored lines on the chart are the various moving averages we use to track the action in Bitcoin. The red circles show the times when those moving averages shifted to a bearish configuration – with the 9-day EMA trading below the 20-day EMA, and the 20-day EMA below the 50-day MA. The three previous times the moving averages turned bearish, Bitcoin immediately sold off. It fell 17% in one month last August. Bitcoin fell 8% in two weeks back in January. And, as we turned cautious on the King of Cryptocurrencies in April, it dropped 11% in just three weeks. Recommended Link [‘Bombshell’ Presentation Exposes Dark Side of Tech Billionaires]( [image]( Blistering presentation exposes dark underbelly of Big Tech; their control over the economy and what you can do about it. If you watch just one presentation this year, make sure it’s this one. [Click here to view.]( -- Of course, these short-term disruptions shouldn’t matter too much to folks who believe Bitcoin is headed to $100,000 by the end of the year, or $500,000 in five years, or whatever upside target the most bullish of the diamond-hands crowd is projecting. As a trader, though, it sure looks to me as though the immediate momentum has shifted bearish. The price of Bitcoin is more likely to be lower a few weeks from now than where it is today. Another concern for Bitcoin bulls should be its inability to rally in the current market environment. Free Trading Resources 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 – at zero cost to you. Just [click here]( to check it out. Speculators have pumped up the prices of meme stocks, like GameStop (GME). They’ve pushed penny stocks higher – with many “sketchy” stocks gaining triple digits in a day (and often giving up those gains the next day). And, they’ve chased the skyrocketing action in the Artificial Intelligence companies. Bitcoin, as the ultimate arbiter of risk-on/risk-off, should be screaming higher in this environment. Its relative underperformance is a giant caution flag. It could be signaling a big, risk-off event. Keep a close eye on the above chart in the coming days. If Bitcoin breaks below the support of the $62,000 level it could signal the start of a larger move lower – perhaps to the next support line near $52,000. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](