I’ve mentioned this frequently, particularly on my tastytrade show, but I want to stress again my theory that cryptocurrency markets – – particularly the big boys Ethereum and Bitcoin – – are going to be very vital in monitoring how this equity bear market unfolds. Indeed, it’s pretty much the only useful mechanism during the weekend for gauging market psychology when the stock bourses are otherwise shuttered.
Here, as of Monday morning, is Ethereum. Take careful note of how feeble its recovery from the Terraluna disaster was, and more importantly, how spectacular its topping pattern is. We’re talking Game Over level charts here, people.
Exactly the same can be said of Bitcoin. I wouldn’t be at all surprised to see us take out last week’s lows before this week is through.
I was actually concerned that the counter-trend bounce might go on for an agonizingly long time (measured on the Tim Impatient Scale, that would be about two weeks), but perhaps not. These charts mean business, and they should be respected. Or you could just keep listening to Barron’s, which is owned and run by permabulls.