The biggest “weird thing” of our lives is hitting the public.
Some people are calling it a “composite” market crash but it is more accurately described as an acid flashback to 2008. The US public collectively remembered the 2008 crisis and the infamous chapters where its leaders were on the wrong side of the story and lived to tell the tale. 2018 has been a little bit different, though. In fact the biggest “weird thing” of our lives is hitting the public. The largest market capitalization trade in history is a “hedge fund” with all the glory of the Masters of the Universe at Berkshire Hathaway (BRK-A) (BRK-B) and their multibillion market cap (NYSE:BRK-A) acquisition of the legendary computer.
People are excited about this trade (wrongly) because they do not want to recall the past. They do not want to venture into the muddy waters of people who are in the pit. They have nothing to lose and can lose it all. They have sat back and waited for one of the preeminent hedge funds in the world to sign a deal with the Bitcoin or Ethereum “bloodline” (we will get to that in a minute).
To the “crisis” of 2008, we add crypto-trading Hamsters. Over the past two weeks the Hamster’s latest chart has been the exact opposite of a Charts Box. The market in Bitcoin (BTC-USD) spent a decent portion of time trading on its lower hand. There was some notable overhead resistance, but all the fine print and baby pictures were brushed aside as the market oscillated around a major range and traded up through the 10K level before settling below it at week’s end.
Here is how the public interpreted the chart from CNBC:
In a limited market for Bitcoin’s underlying cryptocurrency, the $13,000 Bitcoin price could climb to $14,000. Or it could level off or slide downward. Either way, it’s just a matter of time before Bitcoin tumbles. The scariest part is, no one knows if the big price dip is on the way or if the dip is already here.
BTC-USD Daily Chart
Everytime Bitcoin falters, the Market Vectors Bitcoin ETF (BTCC) finds an opportunity to rally. These two charts are spot on in their interpretation. So much so that many ordinary investors think that they can copy BTC and send their trades into the pit. It is time to sober up. Bitcoin is on its way to the finish line for real, you just need to recognize the time is now, not later.