Bitcoin/BITO Bitcoin fell hard through $46,000 support discussed Tuesday and has temporarily found additional support at the Dec 4th lows around $43K. The operative intermediate term trend is down from the Nov 10th high at $69K. There is nothing constructive on this chart and my affection for this sector is waning. It looks to be in lockstep with the stock market, which negates Bitcoin's utility as a hedge. Unless and until it can show some independent price action, it will follow, or maybe even lead stocks lower. Bitcoin Intermediate (2-Day chart) With all intermediate term models pointing down it's only a matter of when, not if, to buy BITO puts. The Fibonacci extension chart above suggests that once $41K-42 is broken, next support won't come in until the mid $30K's, mid 20's after that. We will want to be in BITO puts on a break below $40K, if not sooner. Let the market digest the drop of the last few days and expect a new trade soon. Bitcoin Sell Pending < $40K Option: BITO Mar 18th $30P (currently 5.25-5.50) Stop if triggered: 50% ---------------------------------------------------------- UVXY Still shy of a breakout on the intermediate term trend model, but getting very close. Today's high is $13.60. UVXY above that level will probably trigger the signal. A Wave 3 panic low in the market and UVXY could see $40. Standing-by.
