After 6 consecutive green days in the crypto markets its time to pay attention for some downside momentum which can initiate as the chart describes.
Yesterday we had a big daily wick to the upside that made some people rather enthusiastic and I agree its a reversal we haven't seen during this short bear market. However as said yesterday; the move has been made, shorts have been liquidated and thus the market maker turns the market around again. That's their job, crypto is their market, not yours or anyone else's - the market makers determine the price, simple as that. So what we have here is a bearish divergence on the RSI and BTC travelled back to the 50 EMA exactly like I said in my comment yesterday. Now we either have a M formation on which we will tap the neckline and go down or we will be forming a bigger M formation during this week. If we break 40K again however we are in for higher prices and a proper relief rally or even a full turnaround for the market. In my opinion we are not fully there yet and I don't see much incentive for the market maker to bring prices higher. Why? Because the liquidity is below us. Saw all those guys go 100x long and whatnot? Guess who needs to pay those returns? Guess who wants to liquidate all of those longs (that are now at ATH) ? Yes, its the market maker. Short squeeze done, long squeeze is incoming and they already did one yesterday by breaking 40K. So many moonboys couldn't sit on their hands and the market maker knows this.
Also we have some important info from the ripple case today about ETH. Its a bit fishy especially because on of ETH cofounders just left last week. Why? If bad news comes, all ERC20 tokens can take a huge hit. Which is about half the market. Trade with caution, or better; wait a bit before you make a move. And yes; BTC is still in its 30 to 40K range. Soon I will start posting longs when I think it makes sense to go mega bullish, I know most of you are begging for it... (soon)
IMPORTANT: this is not financial advice, trade based on your own risk and research.
Yesterday we had a big daily wick to the upside that made some people rather enthusiastic and I agree its a reversal we haven't seen during this short bear market. However as said yesterday; the move has been made, shorts have been liquidated and thus the market maker turns the market around again. That's their job, crypto is their market, not yours or anyone else's - the market makers determine the price, simple as that. So what we have here is a bearish divergence on the RSI and BTC travelled back to the 50 EMA exactly like I said in my comment yesterday. Now we either have a M formation on which we will tap the neckline and go down or we will be forming a bigger M formation during this week. If we break 40K again however we are in for higher prices and a proper relief rally or even a full turnaround for the market. In my opinion we are not fully there yet and I don't see much incentive for the market maker to bring prices higher. Why? Because the liquidity is below us. Saw all those guys go 100x long and whatnot? Guess who needs to pay those returns? Guess who wants to liquidate all of those longs (that are now at ATH) ? Yes, its the market maker. Short squeeze done, long squeeze is incoming and they already did one yesterday by breaking 40K. So many moonboys couldn't sit on their hands and the market maker knows this.
Also we have some important info from the ripple case today about ETH. Its a bit fishy especially because on of ETH cofounders just left last week. Why? If bad news comes, all ERC20 tokens can take a huge hit. Which is about half the market. Trade with caution, or better; wait a bit before you make a move. And yes; BTC is still in its 30 to 40K range. Soon I will start posting longs when I think it makes sense to go mega bullish, I know most of you are begging for it... (soon)
IMPORTANT: this is not financial advice, trade based on your own risk and research.
Comment:
This is the problem: BTC longs at ATH. Just look how the price and longs correlate. Too many longs mean no rallies upwards...
Comment:
Time to pay attention to the midweek reversal! Update in about 5 / 6 hours...
Comment:
Fishy horizontal price action for BTC at the moment. A big move is coming, will it be down or up?
Comment:
down it is... exactly as projected...
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