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Blocksmith Says: BTC Headed Down But Needs to Settle First

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Bitcoin has powered back into the upsloping corrective pattern that started 18 June and travelled a lot higher than expected. The top of the channel is US$25,200-ish and very overbought – that is where I am focused now.

We are seeing the same sort of pattern in key US technology stocks as well as the broad market. This is the pain trade, the market is seeking out shorts and smoking them and then when it’s had enough of that, it should reverse down again. Because the overall feel of it all is that of a bear market rally. These, however, can be very convoluted and messy and take a lot longer to fail than one would think.

Preferred view: still looking down, but it needs to settle first.