BITCOIN probably never had a safe haven appeal. Looks like it's heading for a price wipeout. Reflation trade has imploded, Rates and US Dollar on the rise. Speculation has ended, TESLA, ARK fund, NASDAQ and disruptive tech now in the cross hairs of short selling.
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BITCOIN (BTC) once again is struggling on the weight of U.S Dollar bids and the end of speculation in the markets. Ala, interest rates going up, thus yields blowing out the famed NASDAQ which is riddled with overvalued companies. Which, refer to Chart 1, got a boost from the massive Government stimulus programs and Federal Reserve bond buying that encouraged speculation like none other, so the reflation trade began in December 2020, reaching its peak April 21st 2021, reigniting once again, when the meme retail 'traders' lost money trying, in a strange greed inspired crusade, to burn Hedge Funds short positions lead by, yes you guessed it by our chief agent for E-Coins, Elon Musk, who chipped in on July 21st 2021 saying that he owned BITCOIN. BTC then rallying to all time highs at $69355 (2021/11/09). Collapsing in it price at the beginning of 2022, when Central Banks finally excepted that inflation was a problem, with the market beginning to price in via the 10 TR bond yield, that interest rates were on the rise. BTC's price is now caught between a volatile trading range of $48000 and $30000.
Chart 2, shows the BTC sell off and Cathie Woods ARK fund ETF that invests in so called disruptive technologies, as an advocate for BITCOIN being the future of financial transactions. All her EFTs to date have been heavily shorted by Hedge Funds. Separate charts beneath Chart 2, also show why BTC, TESLA and the NASDAQ are in the red. First chart is TESLA/USD which is self explanatory, with TESLA being sold against a higher U.S. Dollar and as a net exporting company, it will be double trouble when rates and the USD start to trend higher. Chart beneath is the NASDAQ 100, also self explanatory, showing the overstretched now tightening.
Will we see a BITCOIN wipe out at 17% in 12 days? And is fair value for BITCOIN under $20,000?
Only time will tell...and it could be short.
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Trade with extreme care.
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