In our last post, we saw bullish signs on a weekend which have been rarely seen since the bear market of 2018 began. The rest of weekend trading saw price fall back but volume stayed relatively strong. Something?s up?.
As we?ve shared before, if buyers can?t confirm a bullish move over a reasonable amount of time (in crypto that?s usually days or weeks), then they?ll take price the other way, and that?s what the patterns show is at risk now ? we had clear bullish pattern, but they couldn?t break out and now bearish patterns have formed. There?s no clear edge at the moment BUT here are three things to consider:
1) We?ve been consolidating around $3500 BTC since the big drop in November ? in 2018 we consolidated around $6000 for months and the next move was DOWN ? is that the pattern? Drop to a level, hold there, then drop?
2) They?ve shown us the key levels to watch on all the key coins ? $3500 BTC, $100-$110 ETH, $30 LTC and .30 XRP for a few examples ? those levels now mean SOMETHING and can be considered for reentry trades if we drop below them ? this is a nice way of saying holding below them is increasingly risky.
3) As of now – key levels are holding ? we need to see a move up soon (ideally with volume) to confirm a bullish move but as of now holding key levels is still A BULLISH SIGN.
SO WHAT?S THE TAKEAWAY?
The bottom line is that whale bots and hedge funds that are focused on crypto have to make their money ? they can?t just let price stay in one place for too long, and we think the battle of the patterns is a sign we?re heading for a BIG MOVE sooner than later.
