Crypto - Summer Is Coming!

Hello everyone!

It looks like the boring market is going to become a little bit interesting. Which benefits can we get from such transformation? Will it be long term changes? Let's try to figure it out.
I want to start from the following. We got two big bullish candles which were formed 08.02 and 18.02 and small candles around them. It can be a signal of coming interest to BTC and that probably big players start building long term positions. The market did not drop after upward movements and it just confirms that these positions were opened not for short term profits.

Another interesting and important fact, not only BTC but also altcoins made a good upward movement. It's another positive moment confirming interest to crypto. Now it's rather difficult to say, what was the real reason for such movement. But we can use this movement as a bullish signal.

The next question is - should we expect a new uptrend?
Now we have the bearish market, the correction movement which was realized in a sideways movement. For starting a new uptrend, we have to get confirmation that the downtrend is over and we must get signals confirming the trend reversal. You can use different tools for this and I use Moving Average with 100 period. For me, it's the line of the main long term trade which I follow. If the price is below this line - we have a bearish market. If the price is above the line - we have a bullish market. The breakouts above/below this line confirm trend reversals.

If we look at BTC, we can see that the price tries to break the resistance zone formed by SMA100 and 4000.00 psychologically important level. It tells us that the downtrend is going to be reversed. Will we get a new uptrend after that of a new sideways movement, we will see later. Now we have to use only this signal confirming changes in the bearish market.

If we look at indicators, they also give bullish signals. MACD lines and histogram support further upward movement. RSI confirms the strength of buyers. DMI is bullish and confirms trend market conditions. ADX lines move upward, and it gives a signal that bulls become stronger.

When the market makes a new swing high, makes a retracement after that and forms a new swing low - only after that, we will be able to tell about a new uptrend. If the market can stay above 3500.00 support and start a new upward movement from this zone, it will be a good confirmation for starting the bullish period. As a variant, the price can drop below 3500.00 but bounce from the uptrend line - in such way we also will have confirmation for the uptrend. The only breakout below the new uptrend line will be a signal that bears have control under BTC and crypto. But for such falling, there must be solid fundamental reasons.

Concluding, we have to become positive with BTC and crypto as a whole. Good signals are confirming that buyers become more active and it can lead to starting the new uptrend. Will BTC be able to develop the good upward movement in the solid uptrend, we will see. For this, we will have to get new signals showing the zones of reversal after the retracement, and how active buyers will be in such period.

I remind you that it's just my vision about possible market movements. If you have your own, please share in comments. I will be glad to discuss with you. I will be very grateful for supporting my post by your LIKEs, if it's not so hard for you.