This morning it dawned on me that perhaps we are seeing way too much coverage of bitcoin. On my Twitter feed, from the people I follow and sites I visit. A Google search of "bitcoin" revealed "about 416,000,000 results (0.79 seconds)."
Too much media coverage and speculative action, with the Winklevoss twins touting a super bullish view -- and internet chat tends to be a marker of extreme sentiment that only sees the upside return and ignores the downside risk.
Let's check out a few charts of the bitcoin ETF.
In this daily Japanese candlestick chart of Grayscale Bitcoin Trust (GBTC) we can see some interesting clues. Prices show a bearish gravestone doji pattern Monday. Bearish confirmation would be good Tuesday but with a near-term peak in the On-Balance-Volume (OBV) line a cautious stance is a good idea. The 12-day price momentum study shows a peak last week and that just adds to the topping pattern, in my opinion.
