CHART OF THE DAY: It's Not Personal When It Comes To Bitcoin

10/08/20 08:10AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

On Bitcoin, the combination of:

A) A bearish @Hedgeye TRADE breakdown (what was $10,797 TRADE support is now resistance) and
B) Rising probability of #Quad4 in Q4

Makes it an easy A/B Tested decision to sell some, then sell all. Other than Hedgeye Equity, my Real Estate, Wine, and Venture Capital investments, I am not a buy-and-HODLer. I am a Risk Manager of liquidity who avoids epic drawdowns.

Like Tech Stocks, the only Quad that has a high and rising probability of crashing #Bitcoin’s price = #Quad4.

If that empirical fact or my decision to de-gross and/or sell affects you emotionally, you should really consider why that’s happening to you. When I sell something for a big gain, the only feeling I have is that I am going to pay taxes.

If Gold and Bitcoin continue to correct in price (they’re already in motion on that since I made my sales), there are no rules in my Full Cycle Investing accounts that say I can’t buy them back.

But, as a matter of risk management #process, I won’t buy either back on some static “valuation” model. I’ll buy them when my dynamic rate-of-change model signals to do so in the right Quad.

CHART OF THE DAY: It's Not Personal When It Comes To Bitcoin - CoD BTC

© 2021 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.