$BTC continues to consolidate after a terrible week (and really, a terrible year thus far). Let’s go thru The Good, The Bad, and The Ugly…

The Good:
– Bitcoin continues to climb back from last week’s drop in price, hovering right near previous support (indicated by the circles – past times when support held firm).
– It COULD be that BTC was the bathwater thrown out with the baby (Luna)

The Bad:
– …but it COULD ALSO BE that this is the beginning of a much bigger, longer, downtrend in the making.
– A bearish pennant has formed as BTC consolidates.
– These patterns usually break in the direction of the previous trend (i.e. – they tend to break down, not out & up).

The Ugly:
– If this bearish pennant holds true, there really isn’t much in terms of potential support below current levels.
– This means that we’d have to look all the way back to December of 2020 to find the next potential floor (support) below our feet, which resides at/around $20,000

As always exercising proper risk management should be the first rule in every trader’s rulebook. Like any S.W.A.T. team or our elite Navy SEALS, no one goes into battle without an exit strategy… for this same reason, you should never go into a trade without an exit strategy.

For the CMT Association…

Adam D. Koós, CFP®, CMT , CEPA
President, Sr. Financial Adviser, Portfolio Manager
Libertas Wealth Management Group, Inc.
www.LibertasWealth.com