DON'T KNOW WHERE THE MARKET IS GOING? WATCH OUT FOR THESE 2
Here's my take about the market state as @ today, Sunday, 13th June, 2021. Since the major crash took place on May 19th, I observed a critical/key area for the market to break/overcome to see a significant bounce back and I've been talking about it ever since the 19th when this major crash happened. So far it's been playing out perfectly as expected and I wanted to share it here as well if u guys don't mind. I get questions on an almost everyday basis whenever we experience a green day in the market as to whether the market has bounced back. But me being a default daily time frame trader that I am, I have observed that it's a alternating thingy currently, i.e. one green day followed by another red, alternating continuously since the crash. This is a choppy/sideways market (neither ranging nor trending) on a micro level and ranging on a macro level
This analysis will be strictly on BTC since it holds the key to determine the fate of the entire crypto market.
Now, if y'all can pardon my "poor" presentation skills, I will breakdown as much as possible
The key battle to determine the Uptrend fate of the market is the 42k region
And it brings me to the concept of Confluence
In TA, confluence is very key, the more confluence and reliable the better your confidence in your trading decisions/analysis and 42k seems to have that currently in the market.
This region served as resistance via an ATH on January 8th this year, held for a couple extra days after which it flipped to support on February 28th & was well defended by buyers leading to new ATHs
Meanwhile, the 50 EMA has been serving well as support in the process
50 EMA lost the battle handing over the mantle to 💯 EMA which held on for a short while only to lose it again
The break of the 100 EMA support also signaled the complete formation of a head & shoulders pattern which has resulted to downward target of around 35k for BTC.
For any significant recovery, it'll take a break above the 42k level which has proved a serious resistance for a couple of days so far resulting to the consolidation & recent choppiness you see today
Another nice confluence around this level is the perfect alignment of the 200 EMA with this 42k level increasing our confidence as to the important role it has to play as seen above
Analysts are not politicians, so you need to look at the flip side as well,
Which is 30k, which had 7 touches of support back in January plus the one from May and now another this month (June), making it 9 touches.
This has made 30k very key as support, meaning a break of this level could signal a serious bearish momentum which if not flipped back to support and well defended by buyers on a daily, weekly or monthly closing basis, could signal the continuation of a downtrend for BTC and the start of another proper market downtrend like in 2018 (we don't pray for that, but never say never in this game😁).
There's been a huge influx of stable coins by whales, meaning a period of accumulation, for how long this will take place, nobody knows,
But maybe when they're ready, that might well, trigger a move above that 42k level, else keep an eye on 30k
All these should be on the big time frames; daily, weekly, monthly
Cos the smaller timeframes are already showing complete downtrends for the market with the EMA positions opposite to what's obtainable on the bigger time frames so they shouldn't be relied upon to make a case about the market state. They generate a lot of noise and hence false signals.
The summary of this whole "Gibberish" is
Keep an eye on 42k area for a significant market bounce back or
30k break below for a return of the bears,
But currently we ain't back yet, we just consolidating between these 2 areas on a macro level and being choppy on a micro level in between these two levels.
Disclaimer" : These are my personal views about the market and should not be treated as Financial advice. Always endeavor to carry out your own research before entering any trade.
This analysis will be strictly on BTC since it holds the key to determine the fate of the entire crypto market.
Now, if y'all can pardon my "poor" presentation skills, I will breakdown as much as possible
The key battle to determine the Uptrend fate of the market is the 42k region
And it brings me to the concept of Confluence
In TA, confluence is very key, the more confluence and reliable the better your confidence in your trading decisions/analysis and 42k seems to have that currently in the market.
This region served as resistance via an ATH on January 8th this year, held for a couple extra days after which it flipped to support on February 28th & was well defended by buyers leading to new ATHs
Meanwhile, the 50 EMA has been serving well as support in the process
50 EMA lost the battle handing over the mantle to 💯 EMA which held on for a short while only to lose it again
The break of the 100 EMA support also signaled the complete formation of a head & shoulders pattern which has resulted to downward target of around 35k for BTC.
For any significant recovery, it'll take a break above the 42k level which has proved a serious resistance for a couple of days so far resulting to the consolidation & recent choppiness you see today
Another nice confluence around this level is the perfect alignment of the 200 EMA with this 42k level increasing our confidence as to the important role it has to play as seen above
Analysts are not politicians, so you need to look at the flip side as well,
Which is 30k, which had 7 touches of support back in January plus the one from May and now another this month (June), making it 9 touches.
This has made 30k very key as support, meaning a break of this level could signal a serious bearish momentum which if not flipped back to support and well defended by buyers on a daily, weekly or monthly closing basis, could signal the continuation of a downtrend for BTC and the start of another proper market downtrend like in 2018 (we don't pray for that, but never say never in this game😁).
There's been a huge influx of stable coins by whales, meaning a period of accumulation, for how long this will take place, nobody knows,
But maybe when they're ready, that might well, trigger a move above that 42k level, else keep an eye on 30k
All these should be on the big time frames; daily, weekly, monthly
Cos the smaller timeframes are already showing complete downtrends for the market with the EMA positions opposite to what's obtainable on the bigger time frames so they shouldn't be relied upon to make a case about the market state. They generate a lot of noise and hence false signals.
The summary of this whole "Gibberish" is
Keep an eye on 42k area for a significant market bounce back or
30k break below for a return of the bears,
But currently we ain't back yet, we just consolidating between these 2 areas on a macro level and being choppy on a micro level in between these two levels.
Disclaimer" : These are my personal views about the market and should not be treated as Financial advice. Always endeavor to carry out your own research before entering any trade.