As it stands, BTC and the market at large has shown signs of health and recovery. We can gauge this because ALT coins are moving with the market this time, as they should. However there are some things traders and hodlers should take into account despite Bitcoin reaching back up to $10,000 USD.
1. We are at a major resistance point on all of the total charts.
2. The total chart in the immediate term looks like it may be rejecting.
3. The weekly RSI is oversold and seems to be top heavy.
4. BTC has hit a pivot point (The Fibonacci ring).
5. Signs in the ALT coins. Many of them are either top heavy, or stuck just above the breakouts. This could suggest that a retest in in order. And this is the crux. The market has gone up significantly, many investors are likely wanting to see a retest to show that the market structure is building up a higher macro floor.
We need to keep in mind that unless we break this symmetrical triangle that we are in, we could go back to the bottom of the formation. which would essentially give us a higher floor to finally break out of it to the up side.
Now for the good news.
The monthly RSI’s are looking very bullish.
This to me looks like the market is begging for a dip before a next leg up. Believe it our not when the market goes straight up for extended periods, it turns off investors because, the bigger they are the harder they fall. A healthy dip in the short term would do the market good to get more money in the market from the side lines.
More good news. The ALT coin market is heating up again and they are still on the FLOOR, technically the entire market is still on the floor as it is still down from 800BN in the bull run of 2017 to the 200BN area. when investors see potential and life in the ALT coin market to make massive gains they will enter the market.
We could break out of this formation now, but time will tell. Watch for fake outs, but if it does break out get ready to scale into the market.
Categorised in: Cryptocurrency Markets
This post was written by BlockAdvisor