Bitcoin Bedlam: Don't Panic, Use Our Bitcoin Trend Tracker

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prakashbhu
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Follow this link to learn more about our Bitcoin Trend Tracker Product: https://accounts.hedgeye.com/products/bitcoin_trend_tracker/616!617

The price of Bitcoin and other cryptocurrencies plummeted as much as -20% today. In the last seven days, total crypto market cap dropped -36%, losing $940 billion in value.

News outlets and crypto enthusiasts blamed Elon Musk's tweets and Chinese regulators cracking down crypto. Setting aside the news of the day, there were signs of cracks in the crypto market many days before today's precipitous drop.

The day prior to the peak in total crypto market cap our "Bitcoin Trend Tracker" began to register Bearish trends for the Grayscale Bitcoin Trust (GBTC) and Microstrategy (MSTR) and the Amplify Transformational Data Sharing ETF (BLOK). And then Bitcoin itself changed to Neutral in our crypto tracker yesterday and officially went bearish this morning.

In other words, there were identifiable signs that assets within crypto were breaking down ahead of today's mayhem.

"I was having a panic attack in the parking lot today," says Hedgeye CEO Keith McCullough on "The Macro Show" this morning (in the video above). "I'm long a s#!tload of Bitcoin and I ignored my Bitcoin Trend Tracker signal. I'm kidding. I stopped myself out of my Bitcoin when the trend broke."

What do you do now? "It's really bad when Bitcoin goes to Bearish trend," Keith continues. "Our signals identified this. Bitcoin broke trend on accelerating volume and volatility. The volatility of Bitcoin has gone into the 85th percentile if you look at the Bitcoin Trend Tracker this morning."

"I wasn't buying any damn dips in Bitcoin. It's not a dip until it's back above the trend," says Hedgeye CEO Keith McCullough on Monday's edition of "The Macro Show."

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Crypto Trading
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