Is the alt-coin market about to crash 65% ??
After a crash of near 50% is a further crash coming?
On the above daily chart there is a worrisome head and shoulders pattern on the alt coin market total. That is the total value of all crypto assets except for Bitcoin.
The bearish:
1) RSI is below 50 (circled in green). The longer it stays there the longer the market bleeds.
2) For the Head and shoulders pattern to confirm a break of the neckline is required plus following resistance test. Watch for that in the days ahead. No trader acts without confirmation, only the emotional.
3) The Bollinger Band (not shown here) are squeezing with price action in the bearish half. That's not great, not at all.
According to the extension of the pattern the target price would be a reset of the market to early January.
The bullish:
1) On the weekly chart below the alt-coin market total has been battling a major support and resistance channel. Rejection from the $1 trillion dollar level resulted in price action returning to the channel.
2) Price action came into the middle of the channel and confirmed support - a first. Fantastic.
3) Price action remains on the 21-week EMA bull market support band (yellow line). Fantastic.
4) The hash ribbon indicator (blue circled on daily chart) printed a ‘buy’ signal. There’s not a huge amount of data to work with, however they’ve rarely been incorrect.
Which ever way the market goes it will not be boring, if anything energetic. When a Head a shoulders pattern is confirmed, a sell off occurs rapidly. The same is true in reverse, I’m not the only one watching this. There’s money waiting on the sidelines for a bullish confirmation.
My plan? Switch off the computer for 2-weeks!
On the above daily chart there is a worrisome head and shoulders pattern on the alt coin market total. That is the total value of all crypto assets except for Bitcoin.
The bearish:
1) RSI is below 50 (circled in green). The longer it stays there the longer the market bleeds.
2) For the Head and shoulders pattern to confirm a break of the neckline is required plus following resistance test. Watch for that in the days ahead. No trader acts without confirmation, only the emotional.
3) The Bollinger Band (not shown here) are squeezing with price action in the bearish half. That's not great, not at all.
According to the extension of the pattern the target price would be a reset of the market to early January.
The bullish:
1) On the weekly chart below the alt-coin market total has been battling a major support and resistance channel. Rejection from the $1 trillion dollar level resulted in price action returning to the channel.
2) Price action came into the middle of the channel and confirmed support - a first. Fantastic.
3) Price action remains on the 21-week EMA bull market support band (yellow line). Fantastic.
4) The hash ribbon indicator (blue circled on daily chart) printed a ‘buy’ signal. There’s not a huge amount of data to work with, however they’ve rarely been incorrect.
Which ever way the market goes it will not be boring, if anything energetic. When a Head a shoulders pattern is confirmed, a sell off occurs rapidly. The same is true in reverse, I’m not the only one watching this. There’s money waiting on the sidelines for a bullish confirmation.
My plan? Switch off the computer for 2-weeks!
Trade closed manually:
Over and done with. Generally no more alt coin sell offs except for a few.
Comment:
Price action has now seen a 60% correction since the top. This update is to make folks aware price action is now currently testing the 21-week EMA as shown on the 2-week chart below.
Circled in yellow are previous tests during a bull market, as we are now in. A green bodied candle printed on here before mid-August will be very bullish for the market in the months ahead.
Message below if you'd like to see a update to this.
Circled in yellow are previous tests during a bull market, as we are now in. A green bodied candle printed on here before mid-August will be very bullish for the market in the months ahead.
Message below if you'd like to see a update to this.
BTC
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Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
What makes it different?
This price action is the alt-coin market total without Ethereum, Cardano, Dogecoin (assets I think that are overbought and/or unlikely to see significant upside during the remainder of this year).