Bitcoin has seen a major decline from our previous target of $9.7k. We expected BTC/USD to top around that level and it did. We can see on the 1H chart for BTC/USD that it already started a decline from there and is now at the bottom of the larger symmetrical triangle. This next move is very important because if we see a break below this triangle, all hell is going to break loose and very soon.
For the past two days, Bitcoin traders and investors have been excited about “Paypal integrating Bitcoin”, “Wall Street switching to Bitcoin” and other false hopium. These are tricks and schemes that the market makers and whales use all the time to sucker in unsuspecting retail traders who fall for it over and over again, all the time. This time, the stakes are much higher and we are going to see an unprecedented crash which would also be in tandem with the next move down in the S&P 500 (SPX).
The EUR/USD forex pair is showing signs of exhaustion. It is getting ready to decline again and this time it risks falling below a key descending triangle. None of this bodes well for Bitcoin and the rest of the cryptocurrency market. The US Dollar Currency Index (DXY) is very bullish today and it is showing very positive signs of long-term growth. This is one of those times where it is best to just cash out and stay in cash and let the correction take its course before we enter bullish positions again.