Bitcoin’s dead cat bounce hates weekends

by Chris Becker

The cryptocurrency we love to hate is having a tough Monday morning with another weekend gapdown, falling to just above the $3800USD level:

A lot of fingers burned from the recent uptick, with a big uptick of new entrants into the “scheme” as $15billion in market value was wiped off this morning. From Cointelegraph:

Leading derivatives market CME Group tweeted on Feb. 21 that the recent surge in Bitcoin’s price at the beginning of the week lead to record Bitcoin futures volumes on Feb. 19, with over 18 thousand contracts traded.

Stepping back we can see how this dead cat bounce doesn’t have many lives:

Price has been unable to beat the late 2018 highs that formed solid resistance at just above $4100USD per coin, and have now begun their rollover.

My favourite pattern trader, Peter L.Brandt has drawn an analogy to the 2013-2015 correction, which saw a near 90% decline, an 18 week long retest and then of course, an awesome rally:

Might be a long bow, but watch for the speculators to pile in if the retest firms and gets back above $4100.

Comments

  1. This website called Bitcoin to zero by the end of last year. The language was so definitive and absolute regarding its demise – time to accept you were totally wrong.

    Yes a correction happened – that is all.

    Every major around the world from Morgan, Goldman, Berkshire, Commonwealth, China, to all the major techs – PayPal, Union, Facebook, Amazon, Ebay, etc you name is now on board.

    Time to update your views. Bitcoin is here for the foreseeable future and the predictions of its demise are totally wrong.

    A bit like how FTTN was the best choice hey ?? Remember that one !

    • The various contributors seem to have differing views on many subjects including bitcoin.
      Possibly need a bit more subtlety than “this website”.

      • agree

        UE = more realistic, balanced view
        HnH = hide under your bed, the end of the world is coming (tactic to keep stringing along the tards, keep readership high)

    • Becker and HnH have both said bitcoin is worthless. But neither has put a timeline on it going to zero afaik. And certainly not a call for the end of 2018. So there is straw man #1

      And most of those other “major players” are doing R&D into blockchain based payment technologies. That is not the same at btc or crypto currencies in general. But you actually know this, you’re just a big fan of straw men. And CAPITALS.

    • Deliberate bitcoin-trolling article on a Monday morning only receives 5 comments

      I think that is a clear sign that absolutely no one gives a sh!t either way anymore

      Which in turn means its over

      Circling the drain at this point

      • “Which in turn means its over”

        Or perhaps it just means we’re at the bottom of the ‘Trough of disillusionment’ in the Gartner Hype Cycle or ‘Despair’ in the bubble phase chart.

        Don’t write off a re-ignition of this sector once enough speculators have given up and the trash projects have collapsed.

      • Joseph is on the money here – while the value of Bitcoin is worthless, its market price is detached from that valuation, and subject to investor psychology. We could see another retest and runup, which was the point of the article…..

  2. Nearly 90% decline from peak…if it smells like a turd…..if it looks like a turd……it very likely is a turd.

  3. The proof as they say will be in the pudding.

    Is BTC challenging to grasp? Yes
    Volatile? Yes.
    Had a big speculative run up? Yes.
    Had a big retracement? Yes.

    Dead? Not even close.

  4. Love the dialogue, next please cover #xrp it has a genuine use case, not discussed here as yet. Yes, #btc is BC 1.0 alike BetaMax Versus VHS. I’m not a BTC Maximalist, but there is no doubt in my mind this is a new asset class. Watch the IMF! 😉 😎 🙏