BITCOIN: This Indicator ALWAYS Signals MORE PANIC SELLING (Don't Fall For It)

Jason Pizzino

Market Analysis

The last 24 hours have seen significant declines in the cryptocurrency market, with Bitcoin and other coins experiencing substantial drops.

Bitcoin Analysis

  • Bitcoin has been rejected at the 50% level of $103,500.
  • It experienced panic selling into a low of $97,700 but has been grinding through a process that may lead to significant moves upside.
  • A breakdown of $74,000 would change the analyst's mind about the cycle's status.
  • The fear and greed index remains in greed territory, suggesting no immediate signs of a market crash.

Market Cycles

  • The analyst has broken down Bitcoin's cycles from lows to highs and back to lows, counting the days in each phase to estimate the time left in the current cycle.
  • Based on past cycles, the current bull market, which has been going on for 800 days, might have around 300 days left, but this is speculative.

Traditional Markets

  • The analyst discusses the upcoming FOMC meeting and its potential impact on the market, suggesting that the forecast of 4.5% federal funds rate might not significantly affect the market unless there's a cut or hike.
  • The financial sector of the S&P 500 is still showing strength, with home builders and the NASDAQ having reasonable performances despite some pullbacks.

Inflation and Stock Market

  • The producer price index (PPI) suggests that inflation might not be a significant concern for the stock market currently.
  • The PPI stock market model indicates bullish signs, with the Dow performing well during favorable periods.

Cryptocurrency Analysis

  • Micro Strategy: Failed to break above the 50% level, indicating potential further downside.
  • ETH: Broke down from the 50% extension and is testing lower levels, potentially heading towards $2,900.
  • Salana: Experienced panic selling and failed to hold the 50% level, indicating short-term weakness.
  • XRP: Had a panic sell-off but is slightly stronger, with potential to test lower levels if it fails to hold current support.
  • Suey: Broke down significantly after failing to hold the $4 level, with next support levels around $2.90 to $3.
  • Cardano (ADA): Attempting consolidation above $0.80, with potential pullbacks to $0.65 to $0.70.
  • Pepe: Failed at the 50% level and came down quickly, a common behavior for coins failing at this level.

Conclusion

The analyst concludes by emphasizing the importance of watching the 50% levels in coins and considering the overall cycle and macro trends. A sale on TIA Premium and the Indicator Suite is also mentioned as a resource for traders.