by Mish Shedlock, Mish Talk:
The rising wedge in Bitcoin broke hard. Expect another bear market.
Bitcoin Technical Chart Analysis
- Rising wedge broke sharply lower, as expected.
- A head-and shoulder pattern formed, with a weak right shoulder.
- Bitcoin is right on support now at ~75,000.
- The implied target of a break is ~(75,000 – (126,000 – 75,000)) = ~25,000. There is long-term support at 25,000.
- There is intermediate support at ~54,000. I would expect a bounce there. But a drop to 54,000 would only be a 60 percent decline.
- An 80 percent or greater decline is more typical for a bitcoin bear market. That’s the 25,000 level again.
- An 87 percent decline, hardly unusual, would take bitcoin to 15,000.
Cato Institute analyst Nicholas Anthony argues the US Congress needs to reform the Bank Secrecy Act, repeal confidentiality laws and end reputational risk regulation to address debanking.
