Today we got a confirmation of our ‘three-river drowning cat’ pattern with Bitcoin trading lower by over 2% or $800 as of 5:15 PM, ET.
The last close below the 600-day SMA was on April 21, 2020 exactly two years and one day ago! Disproving many analysts that were making the claim that the four-year cycles in Bitcoin were no longer relevant.
Forces that helped BTC trade lower include the decline in the Nasdaq ahead of the Fed’s raising of interest rates.
With today’s confirming candle we can now lower our protective stops to just above our entry price of $40,800 as the high of the day was literally right below or above that price point depending on which exchange you trade on.
Take protective stops from $42,000 down to $40,850.