Not the move that ETF bulls were looking for, but also not surprising with GBTC now unlocked and putting selling pressure on the market.
Technicals at the moment indicate that more downside is likely.
The weekly candle closed as a shooting star, a candle with a long wick up and red body. This is often the signal of a weakening or ending uptrend. This also happened to have a wick up into the golden pocket, between the 61.8% and 65% retracement levels, a key resistance on the chart.
I have no idea what will happen - nobody does. The chart indicates that bears are back in control for the moment.
We need to see more downside to confirm the bearish candle from last week, or else the shooting star is not that meaningful.
This week will be fun to watch.
Technicals at the moment indicate that more downside is likely.
The weekly candle closed as a shooting star, a candle with a long wick up and red body. This is often the signal of a weakening or ending uptrend. This also happened to have a wick up into the golden pocket, between the 61.8% and 65% retracement levels, a key resistance on the chart.
I have no idea what will happen - nobody does. The chart indicates that bears are back in control for the moment.
We need to see more downside to confirm the bearish candle from last week, or else the shooting star is not that meaningful.
This week will be fun to watch.
scott.melker@texaswestcapital.com