Is Bitcoin Set For A Fall?

The Bitcoin chart suggests a greater probability of significant downside risk rather than further appreciation.

The halt of the 2021 rally was preceded by steady capital outflows from Bitcoin trading vehicles and suggests air may be leaking from the speculative balloon that characterized the current investment climate.

The weakness of Tesla shares and a reduction in call option buying supports this view and suggests that a change in investor psychology may be beginning.

Investor optimism and market valuations remain at extremes, which prompts us to maintain our view that risk/reward continues to be unattractive.

However, the current macro dominated investment landscape continues to produce opportunities that will be helped by the upcoming market volatility we expect.

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