On the fence? You should read this.

I see a lot of uncertainty out there and it seems like the majority of folks are still bearish. This is understandable. From a bottoming perspective, there is an old saying that bull markets are born in low volume and die in high volume. Bear markets are born in high volume and die in low volume. The rational is that when the bear market begins people think they are buying the dip. So, as the bear market begins, it is common to see some big high volume bounces. However, those people end up getting burned and many exit the market altogether. Others, stay in the market but, having been burned, they are fearful of buying the dip they and convince themselves that every move up is just another trap.

I can be a bear or I can be a bull. If you follow someone who tells you to short one of the major supports, that is a clear indication that you should not be following them. You make money by buying on major support and selling on resistance. If you have lost money in this market it is because you have bought the pumps and sold the dumps...if you do it correctly, and if you are patient, you will not lose money by buying the dumps and selling the pumps.

These are the incredibly bullish reversal patterns I see on almost every coin. If the chart patterns do not make sense to you just let me know and I will try to help.

Litecoin falling wedge reversal pattern into parabolic trendline:

Ethereum falling wedge reversal pattern into parabolic trendline. Also hits major non-parabolic support on the weekly chart:

Monero falling wedge reversal pattern into historical support:

XRP falling wedge reversal pattern into historical support:

Dash falling wedge reversal pattern into parabolic support:

Comment:

We finally got a breakout! I'll post two pictures below. The first one is my personal chart. It shows the lines that I have been watching. Bitcoin likes to head for areas of confluence and this was an obvious one. As you can see, we poked through all of them which is exciting.

The second one is actually more interesting to me and tell me that, if this line holds, we may be looking at a bottom. The reason I saw this is that bitcoin has been acting differently this past week. When a line is broken, we see bitcoin come back and test that line to confirm it as new support. It has been doing a lot of this and, as we saw the other day, it dumped hard and fast into support at 6220.

Compare tonight's pump to our break of 6700 in mid July. When we broke through 6700 in mid July we never came back for the retest. This was a signal that (a) we were going to have to test it again at some point in the future, and (b) it probably wouldn't hold when we did dump. So, this is interesting behavior and based on the price action, it looks like bitcoin is just confirming these levels as support so that we can move on. To be clear, price may want to keep testing these supports but i am not expecting the big dump that others are calling for.

Comment:

I've been away from the computer most of the day but my understanding is that SEC rejected 7 ETFs today. This is not a surprise, the one that I had an eye on was the ProShares ETF and that one was based on regulated futures market; however, a month ago the SEC said that futures market was not "substantial enough" for an ETF and detailed the reasons for that decision.

Moving on, here is a look at my personal chart. It is messy but it gives you an idea of what we are looking at. My own opinion is that it would be very bullish if we can hold support after 7 ETFs were denied and I think we might just do that. Lets see how this plays out.

Comment:

Comment:

This is what I am watching. We have cleared some big resistance and that should act as support; however, we still have a lot of resistance above us. Just keep an eye out as we approach the 7130ish level. If people keep closing short positions we could get a breakout, if not, I would think we may be in for some sideways movement.