What Is A Bubble?
From a technical chart viewpoint, a bubble is a specific pattern of the volatility envelop that resembles, well! a bubble…
What does match best the actual Bitcoin price volatility pattern?
Of course, it is the bubble shape on the left part of the above gallery:
What is the consequence?
Once an equity price has not been supported by the moving average that runs through the middle of the envelop and crosses below it then it rarely stops until it has made a contact with the lower boundary of the envelop or come close to it.
Where is the Bitcoin price going?
It will possibly retrace down to the $5,000 price level – give or take $1,000 – according to the scenario proposed already six weeks ago and any short term bounce should be short-lived:
We expect the Bitcoin price to correct down to $7,000, possibly even lower to $4,000. Let Bitcoin again make a fool out of your Charts And Trends analyst…
And nobody seems to like him
They can tell what he wants to do
And he never shows his feelings
But the fool on the hill
Sees the sun going down
We are short XBTUSD (via Kraken) from $8,600 based on this configuration posted yesterday: