Bitcoin Breakout - Here's what we are watching

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Transcript: The s&p 500 battling for 55. Right now we are back towards the lows of the day joining us Phil Streible, Chief Market Strategist at Blue Line futures with us for a Friday afternoon chat hitting all kinds of stuff. But stocks first real quick, Phil kind of an ugly week. Yeah,
it's been terrible. I mean, just the widespread liquidation, I think that it caught people off guard, when we saw that big rotation at attack out of the s&p 500 into the Dow into the Russell, and it just really took off from there and they stretch themselves a bit too far. Now you've got this, you know, precipitous decline here on all the indices across the board. So I think people felt like we got a little bit long in the tooth. And you know that it's really difficult to trade when you get that volatility index up 12% on the week, you get that breakout and file, you can basically throw out all the support resistance levels right out the out the window here and kind of just hold on. This is where people need to kind of pare back, this is where right sizing also plays an important role volatility, adjusting your positions, things like that. So you're gonna have to get the pencil and paper out over the weekend and really think about position sizing with this increased volatility. Yeah,
does kind of change the game a little bit right. And not as easy as pressing the index Buy button with big tech carrying in no matter what else happens.
You know that CrowdStrike and Microsoft news overnight that really put a kind of a damper on any kind of recovery that we're seeing, we saw CrowdStrike down seemed like the CEO kind of fumble that, you know, that recovery interview here halfway through the session. So we're not really seeing much of a bid here. At the moment. I think people are going to kind of throw in the towel at the end of the day. One moment, NASDAQ was almost down about 100 points. And then within you know that last interview or you were on, I mean, we saw it fall like 75 got some P fell 10 I'm like holy cow, you know, I need a five point harness on his chair.
And right. Do you need the backup stuff for all the internet outages down there? You just hit the beach? How's that work in Florida?
Yeah, no, I work. It's working pretty well, you know, the problem goes on the same
system down there.
You know, some of the trading platforms and things like that, you know, were impacted by it in you know, there were some things that we had to get through, but we've got backup plans for every single thing that's out there. So I mean, you know, it's not as archaic as calling down a train pin, get my floor right into the floor. I wish we were back at that level.
That's going backwards. We got to keep going forwards. Phil, does Bitcoin take any message? Is this white bitcoins up to here? People going like, oh, I need something that's like, you know, in a different world.
Yeah, the conversation we had last week we were kind of stuck between 55,050 9000 and we were consolidating at 57 It seemed like after the you know, the events surrounding Trump and the rally and everything. Bitcoin had gapped higher and a lot of people were texting and calling saying they wanted to you know buy bitcoin Sunday night we saw that big gap words up on price we consolidated Tuesday Wednesday Thursday. Today we broke out over the 50 day moving average we're closing on the highs right now I wouldn't be surprised to see another massive ETF and flow people buying physical Bitcoin and then you look at the news flow from last week. It was like it was so bad and that's oftentimes when you get the turn in the markets. Okay.
All right. So the move here you think kind of it sounds like technical overdue maybe that could actually carry us it's not like a one time flip.
I think so I mean, we gapped higher we consolidated we broke out to the upside on the highs of the day. That's a chart pattern you want to look for it doesn't matter if it's corn, live cattle, whatever market it is, that's what you want to be participate in. If you're a technician, I think part of the weakness in US equities right now people are really they're cashing in on the chips there there's a little bit of panic in the air there's a little bit of panic up to over new policies that Trump could implement if he does take off his so you're seeing like the China factor the Europe factor, Mexico with evey sales, things like that. Really, people are just getting a little bit nervous and Bitcoin seems to be that safe haven asset that people are looking for at the moment. Okay, all right.
Like it so it's a pretty good technical take with stocks in under pressure to Bitcoin now going the other way because it had been underperforming while stocks are doing well. So it's kind of interesting I do with it there. It's getting interesting again. Gold breaking down but crude breaking down even more I feel like we should talk WTI fell I mean, the look like it was trying to get up above 85 Again, total rejection there and then we break through 80 bucks to the downside what's going on?
I know it's sitting on the 50 day moving average right now. It did break a critical level of support taking out the last two three days lows. You know, it could target the 200 day moving average a lot of people thinking again on Trump policies, energy independence, things like that. The problem is, is it takes it takes almost 12 months for any of these things to really gain any kind of traction with any kind of new administration. So I don't think that you know, we automatically go to $60 crude oil I think that there's a fight back and forth from here but again, this is just kind of a sour attitude towards the the economy right now. Kind of a slow down kind of a changeover. People are nervous, you know, and feelings are playing a role at the moment.
I think you nailed that. Because the whole commodity complex basically come in with it too.
I know in the you know, gold futures making a record high this week, now they're down gold's down 50 bucks silver really went to a freefall I got to wear my make silver great again hat Yeah, we got to get that thing back up. 35 $40 make all the little guys rich.
One thing I was going to speak in Red Hats one thing I was going to say with WTI is if there is like a Trump play you know a drill drill I think that's like the most laughable thing because we're already drilling tons like that setting world records but let's just say that that's gonna like go up even more than I guess you could have crude down energy stocks up which I feel like that kind of regime
and like I'm blue line capital on our wealth management side will tend to own some of those like midstream energy companies, some of the pipelines that aren't really impacted by the price they're going up or down they just want to see increased demand and more flow through you know, so those might be the products that people want to look at the pay generally a healthy dividend the price I don't want to shy away from there's risk involved but the price seems to be a little bit more stable a little bit less volatile out there then see some tech company or or a small cap. Okay,
got it. Like it good analysis. Phil Have a great weekend sir appreciate the market walkthrough there. We hit a lot. YouTube Take care man. No example Phill Streible. Chief Market Strategist at Blue Line futures

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