As I explained before in
I believe this is close to a bottom for many reasons but we have not seen definitive action either way to break out of this wedge. The very low volume indicates many are in a wait and see mode (or just closed out for the year). We have 2 possible scenarios which I've labeled in purple and I think the downward movement is less likely.
Longs/shorts are still going up but we need to see some real volume come to the table. The closer we get to the tip of this wedge (around Dec 20), the higher the likelihood that happens. In the meantime we see a very large consolidation pattern forming as we waver around the miner break even level. It will become either a major resistance or a major support zone in the future price action.
A move into the $7500 area will cause many to buy and will be further fueled by short liquidations likely causing a massive pump. This will then set the bottom price likely for the entirety of 2020.
A move under $7100 will cause massive long liquidations and an immediate dump into 6500 or 6000 which will go right into tons of buy orders at that level. This will cause violent price action.
Stay sharp and ready.
Longs/shorts are still going up but we need to see some real volume come to the table. The closer we get to the tip of this wedge (around Dec 20), the higher the likelihood that happens. In the meantime we see a very large consolidation pattern forming as we waver around the miner break even level. It will become either a major resistance or a major support zone in the future price action.
A move into the $7500 area will cause many to buy and will be further fueled by short liquidations likely causing a massive pump. This will then set the bottom price likely for the entirety of 2020.
A move under $7100 will cause massive long liquidations and an immediate dump into 6500 or 6000 which will go right into tons of buy orders at that level. This will cause violent price action.
Stay sharp and ready.
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