The current environment suggests that most of the Bitcoin appreciation/depreciation might take place in very short periods of time. On the other hand, these moves might be short-lived if they are not followed by more capital.
Last month I warned about the bubble in the stock market, and what was going to happen when it popped. Make no mistake, the chart of the S&P is the most dangerous chart in the world. When this parabolic structure collapses, it is going to bring down the global economy.
For all of its influence over the short term, price discovery of an array of asset classes and notable the precious metals, high frequency trading (HFT) fuels an even more ominous trend. The speed and widespread use of trading algorithms have expanded the gap between fundamentals further than anyone could have imagined.
At the start of the year we asserted that the mining equities could lead the metals higher. Since then, the shares have roared higher while the metals have remained subdued. Gold has gained a bit but silver has really struggled. Why are the stocks performing so well if the metals are not confirming?
In my last post I noted that gold could give a major buy signal in the next 2-3 weeks. Let me stress again that patience is required right here. Gold has to confirm the intermediate rally first. That means it needs to break above $1,268 and make a higher high.