A Break Of $30,000 Would Make Bitcoin Vulnerable To A Bigger Slide


We looked at three bubble charts (Bitcoin, Tesla TSLA, and Lumber) a few weeks ago, each of which continues to look like the air was coming out.

With that in mind, Bitcoin has taken a few more blows in the past few days. At the weekend, a big Bitcoin event took place in Miami with a lot of dogmatic comments (typical for bubble markets).

Then yesterday the Justice Department announced that it had recovered $ 2.3 million of the ransom collected from the Colonial Pipeline hack. It turns out that Bitcoin is not safe from government seizure.

In addition, today the IRS is calling on Congress to require reporting of large cryptocurrency transfers to the IRS.

With the cracks in the security advantage of the Bitcoin armor, trading back to the lows of the May crash this morning …



As you can see in the graph, the price of Bitcoin appears to be very susceptible to a major drop if it breaks below $ 30,000. When that happens, gold should start accelerating higher as the money moves of the “new inflation protection” to the more trustworthy, historical inflation protection.

As I said earlier, Bitcoin continues to look more like a tool of speculation and corruption on the way to a typical bubble outcome (i.e. crash and irrelevance).

Get my free daily Pro Perspectives notes delivered to your inbox here.