Bitcoin Bust Resumes: Is the Top In?

The top 15 cryptocurrencies are all in the red after a brief bounce following a 40% plunge in Bitcoin.

Despite the plunge, one third of the top cryptocurrencies are still in the green from a week ago. Bitcoin itself is the biggest loser over the last seven days, down nearly a third in value.

Is the top in?

I don 't know, nor does anyone else. But if the top is in, a 90% decline from the top, or far more, is likely in the cards.

Someone has to get sucked in at the top. Was it you?

Mike "Mish" Shedlock

I'll call a top in bitcoin on technical analysis. Bitcoin news was really buzzing in October through early December. News quieted down considerably heading into the top. Some articles by major mainstream investment groups were even negative it the top. One cryptocurreny CEO warned of a bubble and sold his coins. The price reversed and the chorus of buy the dip is muted while news becomes more cautious about buying bitcoin.

Leading up to the top, the price on a log-scale showed an exponential, so this is a highly unstable event. The Dow industrials looks like a straight line on a log-scale chart, and that means normal instability.

These moods are reflected in a sharp sell off followed by choppy sideways price movement that looks like classic Elliott wave triangle pattern. At this point the chart patterns are giving a high probability of another sell off below $10K beginning within days.

Maybe it is a good time to reread “Extraordinary Popular Delusions and the Madness of Crowds”.

I hope Kim gets crushed in the crash.

People should really stop talking about Bitcoin et al ad nauseam, especially when BTC is now up almost 2k. It makes them look like fools. Kinda like endlessly talking about recession.

I think there are signs of a major pullback. Futures performance so far. The 'chasing' of lower price crypto. The failure to continue the weekend ramp up. Real questions on whether it is scalable and just how many crypto's do we need?