I’ll just state once again how important crypto strength or weakness is to equity behavior. I’m not referring to the literally millions of alt coins and junk coins out there, which are meaningless. I am referring to the tiny handful of large-cap instruments, principally Ethereum and Bitcoin.
Ethereum has quite clearly broken down from its last, best chance at a meaningful breakout by way of that right triangle setup. Instead, it is convulsing in a series of failures, and all holy hell will break lose if it cut beneath that low price established last April 9th.
Here’s a closer look. If, for whatever reason, we rally, key resistance is at $2,626.
The same holds true for the much-more-important Bitcoin, which has completed a gargantuan head and shoulders top which, as I’ve sheepishly declared, projects a target price of $25,000.
Key resistance levels are about $74,400, $84,500, and way up high, $97,500.
A break of $60,000 would be big news, and a break of $50,000 would call into question the entire multi-trillion-dollar silliness. I suspect in a few years we will all look back at crypto at the largest financial debacle in history, but for now, all of Washington D.C. is still cheerleading this fever dream.
