From Weakness to Base: $BTC & Software Show Stabilization
This chart tracks what have been two of the biggest weak spots in markets.
(and is interesting for 2 key reasons)
First: both Bitcoin and Software stocks have stopped going down (and actually are starting to look very promising from a technical standpoint)
— i.e. the weak spots are no longer getting weaker.
That’s important because in markets weakness has a habit of spreading.
But also, further upside in these two (which is looking likely) will help rebuild sentiment and reinforce the bullish outlook for stocks in general.
Which brings me to the second point…
Second: both boast a bullish tactical outlook (as I just outlined in my latest Weekly Macro Themes report)
Basically, we’ve seen a major reset in price (software down more than -35%, bitcoin off almost -50%) and a big washout in sentiment/positioning.
And yet, the longer-term uptrend remains intact for both assets.
We’ve also seen both Bitcoin & Software stocks rebound off of clearly defined support levels (and p.s. those support levels also serve as useful triggers for risk management if the bull case doesn’t work out).
So it’s a very interesting chart from a market analysis standpoint, but also for the potential upside opportunities unfolding right now.
Bottom line: the weak spots are no longer getting weaker (and if anything, are actually starting to look bullish).
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