J-Pow Flips the Script. FLUX Trading.
Issue #10. Crypto Reversal. Hot Dollars. Quantum Computing Explodes.
For the last Breakout issue, click here.
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This Tuesday on the 17th of December, post-market close, I wrote a thread on Chat setting the case for an imminent technical breakdown in Bitcoin.
Clearly, I was biased as I had just published Dump Your Crypto 2.0 where I came out fully bearish on Crypto Cycle #3 — but I will post the charts from that thread here — Daily, 4 Hour and 1 Hour charts.
DAILY. Technically, there was NO reversal on the daily here — but the sideways to up move that couldn’t gain more momentum despite the bullish catalysts made me skeptical. Which meant a move below the EMA10 would be an early sign that this is reversing.
4H/1H. The 4 Hourly chart was more telling as prices began testing key MAs (Moving Averages) while the hourly chart had already started to breakdown. I’ve explained my thought process using red annotations on the charts.
At the time of the FOMC press conference on the 18th, BTC was at ~$105,000 — and when it didn’t like what it heard, it just crashed down.
Prices touched $92K by Friday the 20th, before bouncing strongly off the MA50 (no shock there) while key markets were attempting a bounce as well.
Again, another not shocking outcome was that the overhead MAs now serve as resistance for BTC as it bounced off its $92K low — don’t worry, I will show you below.
What did J-Pow say?
Jerome Powell poured some cold water over rate expectations for 2025 — he did cut rates on the day but warned against expecting more rate cuts within 2025.
The reason? Inflation.
The market went from 3 cuts to 1.5. This shows how expectations on rate cuts have been reset for 2025 — basically flipping the whole narrative.
Let’s see how key markets reacted to this — what BTC looks like technically, the Nasdaq, major instruments markets like the Dollar and the Yen etc.
We will also look into individual stocks under the QC (Quantum Computing) theme that’s been blowing up as of late and anything else that catches our fancy.
Bitcoin
You don’t need to be Stanley Druckenmiller to figure out what’s going on here. BTC has been pumped and pumped — with even expectations of a Bitcoin Strategic Reserve to be formed by the US Government that would go out and directly BUY BITCOIN!
I mean, what else do you want to hear to make you realise that this is peak stage? Can it move higher? Of course it can. Will I bet on it, no.
For more on this theme, read my last piece Dump your Crypto 2.0 here.
