Harsh words for bitcoin
He adds:
- Bitcoin won't end well
- Would fire any trader who trades bitcoin
- Its a fraud
- Bitcoin is worse than tulip bulbs
Harsh words from JP Morgan CEO.
Technically, the price today moved up earlier today and got close to the 100 hour MA (blue line in the chart above). The last lunge lower has now taken the price below the lows from September at 4112 and 4098. The low reached 4079, but we are seeing some buying to push it back above those levels.
If the selling should intensify, the 38.2% of the move up from the July low comes in at 3749.80 (see chart above). The low from August 22 comes in at 3600. That is still above the midpoint of the move up from the July low.
Where is risk for shorts?
Drilling to the 5-minute chart below, the 100 and 200 bar MAs are moving lower with the price back below those MA lines. They would be risk levels for shorts. Stay below more bearish. Move above and the words from Jamie Dimon will be just like the other naysayers.
The technicals for bitcoin are looking more bearish. The hourly has been able to stay below the 100 and 200 hour MA. They are the barometer for bullish above and bearish below. Drilling to the 5-minute, it too is showing the bears are more in control.
Understand the bitcoin market is not like others. It can be a tulip mania. I personally don't get it. However, how do you know the top of the tulip mania or is there really a tulip mania. In reality the price can continue to go higher despite what Jamie Dimon says because buyers overwhelm sellers.
So use the technicals to define risk and targets. If targets are hit in the direction of the trade, that is good. If they are not or the risk levels are triggered, it should raise an eyebrow. Bitcoin requires managing your risk even if you don't believe in it. Many a person has blown up trading accounts by believing against the market. Our job is not to tell the market to do, but to listen to what the market is saying. The price action and tools tell that story.
