8 Jun 2021 ● 03:39 AM
I should have published this yesterday because prices did not break out of the triangle and had fallen once. But was not sure if that meant that the triangle was a wave 4 triangle, but the warning would have helped. Maybe I was tired from the previous night. But Bitcoin is now confirming a larger degree bear market for itself. The triangle is breaking on the downside and that means the triangle was wave 4 and wave 5 down is forming. Wave 5 can equal wave 1 and end up at 29650. We are in iii of 5 as of now. Now after a 5 wave decline [wave A], you only get a retracement bounce/rally [wave B]. So a bounce is coming later. 50-61.8% of the entire decline can be retraced before another decline [wave C] so long-term investors will get a better price. But by logic wave C would eventually break the low of 29650 later on.
The next question "Is this bad for equity"? When equity drops BTC drops we saw that in 2020. Is the reverse true? In Dec 2017 BTC topped out and that top was not surpassed till last year. In the first week of Feb 2018 Equities topped and started to fall. So there was a lag of 6 weeks. If money is on a flight from BTC will it also leave stocks is a good question and should put us on alert for the next market top in the coming months. Maybe by the time wave C down is starting in BTC [this fall is wave A, the next bounce will be wave B]. In short, what this tells us is that we should pay attention to the next stock market top when it shows up. That does not mean tomorrow morning, but when we get the signal and waves complete the upside. We are on top of that.