Link is back in leadership and it's exciting
Hi Traders.
This is multiple days of me following this market which I hadn't shared, but for the sake of consistency, I'm here to present it.
The daily chart above shows both the bullish and bearish views. As my biases are usually bullish leaning I'll describe the (short-term) bearish case first:
Most obvious is the analog with PA in the same trading range (TR) from OCT - NOV 2019. We see the initial upthrust creates a momentum that slowly dies down through a series higher highs marked with red arrows. The same situation seems to be happening in the current market.
Further we see the June 11 supply bar creating a sign of weakness with PA testing and NOT overcoming it's 50% line. A proper bear market doesn't significantly retrace more than 50% of its climactic supply bars. So it's entirely possible to have a test of the $3 level before continuing upward. Whether we see a downturn depends on the general market sentiment and COVID fears as LINK has fit itself with blue chip assets.
Now for the Bullish Case which is hella exciting:
What districts this TR from the one in 2019 is the ability of price of hold the low that last supply bar. Back in 2019 we really don't see any resistance and price Swifty marks down. This time the lows consistently show rejection with increasing supply. And what's even better is the overall reducing volume that shows supply is drying up and the market is priming for an up thrust.
From April to now most cryptos have been consolidating, LINK's ascending TR is another obvious sign of strength.
And to follow Wyckoff TR structure, the June 11 low could be the Phase C of the TR which is completed with a spring back into the TR, but WE ARE NOT OUT OF THE BLUE,
WE NEED VALIDATION FROM VOLUME. A successful phase C is followed by an increase in interest and prices making healthy HHs and HLs until we reach the top of the TR.
We're not there yet.
But just to make us a little more excited, here's a beautiful iH&S formation intraday:
The conventional H&S pricing leads us to the top of the TR which adds more evidence for the current bias and PA analysis.
But then again H&S formations aren't very reliable this could be a trap for bulls
This is multiple days of me following this market which I hadn't shared, but for the sake of consistency, I'm here to present it.
The daily chart above shows both the bullish and bearish views. As my biases are usually bullish leaning I'll describe the (short-term) bearish case first:
Most obvious is the analog with PA in the same trading range (TR) from OCT - NOV 2019. We see the initial upthrust creates a momentum that slowly dies down through a series higher highs marked with red arrows. The same situation seems to be happening in the current market.
Further we see the June 11 supply bar creating a sign of weakness with PA testing and NOT overcoming it's 50% line. A proper bear market doesn't significantly retrace more than 50% of its climactic supply bars. So it's entirely possible to have a test of the $3 level before continuing upward. Whether we see a downturn depends on the general market sentiment and COVID fears as LINK has fit itself with blue chip assets.
Now for the Bullish Case which is hella exciting:
What districts this TR from the one in 2019 is the ability of price of hold the low that last supply bar. Back in 2019 we really don't see any resistance and price Swifty marks down. This time the lows consistently show rejection with increasing supply. And what's even better is the overall reducing volume that shows supply is drying up and the market is priming for an up thrust.
From April to now most cryptos have been consolidating, LINK's ascending TR is another obvious sign of strength.
And to follow Wyckoff TR structure, the June 11 low could be the Phase C of the TR which is completed with a spring back into the TR, but WE ARE NOT OUT OF THE BLUE,
WE NEED VALIDATION FROM VOLUME. A successful phase C is followed by an increase in interest and prices making healthy HHs and HLs until we reach the top of the TR.
We're not there yet.
But just to make us a little more excited, here's a beautiful iH&S formation intraday:
The conventional H&S pricing leads us to the top of the TR which adds more evidence for the current bias and PA analysis.
But then again H&S formations aren't very reliable this could be a trap for bulls