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Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...

Dots

...If the dots don't connect, gather more dots until they do...or, just follow the $$$...

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UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. July 18 @ 2:00 pm ET ~ Beige Book Report
* Wed. Aug. 1 @ 2:00 pm ET ~ FOMC Announcement
* Fri. Aug. 3 @ 8:30 am ET ~ Employment Data
* Fri. Aug. 10 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. Aug. 22 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Mon. Sept. 3 ~ U.S. markets closed for Labour Day Holiday
* Wed. Sept. 26 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts + @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events

IMPORTANT BLOG POST UPDATES...
* Trade Wars have escalated and now include diplomatic wars PLUS President Trump is cannibalizing prior U.S. market gains with his tariff tantrums against its world trading partners, while destabilizing a delicate world market balance

Saturday, May 12, 2018

Bitcoin's Slippery Search for Fair Value

My last post on Bitcoin made reference to a bearish engulfing candle that had formed on the daily timeframe.

Since then, its price drifted slightly upwards, then plunged and closed below the low of that candle on Friday, as shown on the following daily chart.

The momentum and rate-of-change indicators did not confirm the recent higher price high, but are both in an accelerating diverging downtrend, and are below their zero levels.

Bitcoin Daily

This week closed out on a bearish engulfing candle formation on the weekly timeframe, as shown below.

Both the momentum and rate-of-change indicators are below their zero levels and have been drifting lower over the past few weeks.

Daily and weekly price action on Bitcoin reflects systematic, measured selling since it made its record high in mid-December 2017, and it has failed to stabilize since then. There is no indication that is about to change any time soon.

Rather, these charts paint a picture of a highly unstable cryptocurrency which experienced an initial frenzied parabolic rise, followed by high frothy volatility, and which has yet to find its fair value or prove that it has any at all.

Bitcoin Weekly