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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (104598)	3/27/2021 2:21:29 AM
From: Goose94	Read Replies (1) \| Respond to of 202283

Bitcoin: Souring Like S&P, Beware In our latest E-mini S&P Technical Blog from yesterday, we discussed the resumed erosion following last week’s initial bearish divergence in short-term momentum that presents a short-term but nonetheless developing threat against the bull. Given the relatively positive correlation between stocks and bitcoin, it isn’t too surprising that the latter has now confirmed a similar bearish divergence in short-term momentum (below 16-Mar’s initial 53475 counter-trend low) as well as broken our short-term risk parameter at 53000 discussed in 15-Mar’s Technical Blog. Yesterday’s resumption of last week’s initial setback leaves smaller-degree corrective highs in its wake at ?57225? and ?60280? that it now needs to recover above to jeopardize the ?impulsive integrity of a more immediate bearish count and rather, expose the past couple weeks’ sell-off attempt as another correction within the secular bull trend. Per such, these levels serve as our new micro- and short-term risk parameters from which shorter-term traders with tighter risk profiles can objectively base non-bullish decisions like long-covers and cautious bearish punts. Until and unless this market recoups a least ?57225?, further and possibly sharp losses should not surprise.? The daily log scale chart above shows the relatively positive correlation between the S&P and bitcoin as well as waning upside momentum over the past four or five weeks that suggests the latest phase of the bull from 26-Feb’s ?44555? next larger-degree corrective low in the ?Mar contract could be the completing 5th-Wave of an Elliott sequence up from Mar’20’s 4210 low that could expose a peak/correction/reversal threat that could be nothing short of major in scope. Commensurately larger-degree proof of weakness below that ?44555? corrective low remains required to CONFIRM the momentum failure on this broader scale, ?break the bull and expose at least a major correction lower. In effect, we believe the market has identified 60280 and 44555 as the key directional flexion points heading forward. Shorter-term traders have been advised to neutralize bullish exposure to circumvent the depths unknown of a correction or reversal lower and are further advised to consider a cautious bearish stance from the 53000 level OB with a recovery above 57225 required to negate this specific count and warrant its cover. Longer-term institutional players and investors are advised to pare bullish exposure to more conservative levels and jettison remaining exposure on the immediate failure below 44555. RJO Market Insights rjofutures.rjobrien.com