Will this rally signal the Bitcoin liftoff?The question everyone is asking in this current market malaise is if this rally in All-The-Things will finally lift cryptocurrency from its recent slump?
Bitcoin : But while this rally brings crypto up for the day the true story remains on the Daily timeframe. For this analysis I use Ichimoku, on the classic number settings (9, 26, 52, 26), to best capture the trend. The trend on BITFINEX:BTCUSD is definitively bearish already. The liquidation spike of a few days ago made it manifest.
Ethereum : BITFINEX:ETHUSD remains in a consolidation holding its ground. The key Ichimoku indicator to look at is the often ignored (but most important) Lagging Span, Momentum, or as it is named; Chikou. So long as momentum holds the cloud there is reason to be bullish. Failing to hold... Ethereum then joins the rest in a bearish trend. This level to hold, 3400, also corresponds with breaking the low of the liquidation spike.
Cardano : A good example of how this pattern plays out in recent times is BITFINEX:ADAUSD . Price confirmed the bearish trend on the Daily on October 27, 2021 and the trend has not reversed since.
The rally today, based on interest rate speculation from the FOMC, is evidence that cryptocurrency is interest rate sensitive (what I meant to say at 0:47). I have been sounding the alarm to crypto investors for weeks that the failure to breakout weeks ago was a bearish sign. My intent in presenting this analysis is not to stoke fear and negativity... it is to save people's capital! Bear this in mind when considering "buying the dip" as the dip may be much, much lower by cryptocurrency historical terms.
Study these examples and watch. Trade wisely!
