Bitcoin, the inflation hedge which has fallen 56% in the midst of the sharpest rise in inflation in over 40 years, is plunging again. Recall that we turned momentarily bullish after it broke out of a falling channel back on Feb 6.

We expected a backtest of the 200-day moving average – which BTC dutifully delivered on March 28.

Turning bearish again, we settled in and began waiting for a breakdown. Bitcoin didn’t disappoint. Today, it reached the bottom of the rising yellow channel.

Strange behavior, indeed, for a so-called store of value.

continued for members…We are as bearish as ever on BTC. Not only is the yellow channel in danger of breaking down. The BC=AB pattern etched out from the 69,000 top targets 12,185 just happens to be quite close to the .886 target of a Bat Pattern. Remember, we still have bearishly aligned MAs, a death cross, and a H&S Pattern also targeting 15,277. Other than SPX creeping up on potential support, there is literally nothing bullish to be found in the charts.

Stay tuned.