The March Bitcoin Cobe futures contract has stopped working this week, so we must move into the next month of April, 2018. I can’t go back further than the wave 3 bottom for now, but that may change early next month. Volume will pickup, but it is so slow that I can’t see anything in the May contract month. Bitcoin has been hammering up to the $12,000 price level and has now shown its true colors by resuming its bearish trend.
From a potential Minor degree 4th wave top, I started the 1-2, 1-2, 1-2, and 1-2 count. This would give us an extended wave 5 decline, but with wave three of the 5th wave would be extended. From this point forward only the wave 3-4s should play out which would be about 4 more sets. Each wave 3-4 counter rally will become bigger in degree levels as we progress down. Sure, this may not work, but it is always the first thing that must get eliminated, forcing us to look for an alternate wave count.
There is no chance for Bitcoin to magically transform back into a bull market, no matter how long you keep Bitcoins in your electronic wallet. Make no mistake, Bitcoins are considered commodities and the only difference is Bitcoin Miners mine electrons, invisible to the naked eye. When Bitcoins keep crashing in price, then they will approach the cost of mining. I use the $4000 price level for that, after which we could see Bitcoin miners disappear and go out of business.
Sounds familiar? It happens all the time in the real metals world, as they all need cheap power to keep running. Bitcoin investors can only bet on one direction, which the Forex crowd has been able to do since the beginning.
Lack of real short players keeps the Bitcoin patterns rather subdued, with not too many wild reversals. Of course that could start to change.
Right now we have another H&S pattern forming which could be the setup for another downside breakout. Eventually the $6000 price level will also get retraced.
Total Cryptocurrencey capital base is about $328 billion US dollars, down dramatically since the hay days when Cryptos hit $813 billion.
$485 billion US dollars have gone up in smoke in little over 2 months. The pace that new ICOs are coming out is about 11 per week, which should slow down if no new suckers will buy into this Bitcoin madness. The 24 hour Bitcoin volume has also been crushed, so all this does not bode well for Bitcoins prices to soar again.
Even after any 5 wave decline has finished, any Bitcoin charts can start to flat-line never to rise again.