Bitcoin Weekly: Honestly, Stock Markets are Much More Interesting Than Crypto Right Now

Bitcoin has now dropped down to support at the lower edge of the channel. You could buy this support, but the risk to reward is not particularly good.

On the daily scale, bitcoin remains trading within the parallel channel. Over the past week it dropped down from the middle of the channel, and is now trading close to the bottom of it.

This channel bottom will now offer technical support. If that support is enough to keep bitcoin floating remains to be seen. A strong bounce from the bottom edge of the channel will signal strength; a break down below will confirm a bear flag and signal more downside ahead.

As I wrote last week, in a channel you can buy support at the lower boundary (with a stop loss slightly below). That said, the risk to reward is not very good here. Better wait for a breakout to the upside, which would also cross above the 40 week EMA, indicating the trend is turning.

On the weekly scale, technical support around 72k is still holding. Stay above this and there is still some hope; break below and the picture looks bleak.

Honestly, stock markets are much more interesting than crypto right now.