As we all await the oh-so-important CPI on Wednesday morning, let’s end the day with a couple of crypto charts. The crypto market peaked about four weeks ago (unlike tech stocks, which keep roaring higher) and, should Bitcoin cross below the horizontal I’ve drawn, the selling should accelerate. As it is now, BTC has already shed about 10% of its value.
Ethereum has also backed away from its multi-month rally, and the failed bullish breakout is worth noting. The “risk-on” psychology of surging crypto definitely can feed or detract from zeal for equities.
Naturally, equities tied to the hip of crypto have also suffered recently. Michael Saylor’s Microstrategy (NASDAQ:MSTR) has held below its right triangle top for many months.
I’m going to spend the evening doing a bit of tinkering with the site. I’m as “in position now” (70% committed) as I care to be until we know what’s going on with the CPI and the reaction from the market.