Building on previous idea.
Creation of trendline on log chart of total marketcap marked the end of the first major bear market. Test of this trendline marked the end (or at least major reversal) of 2018 bear market. Now trendline appears to possibly be failing. Crypto markets could be in for a major bloodbath.
Logarythmic chart of marketcap compared with standard chart of BTCUSD
To date, log chart of marketcap has remained above a trendline that was created in 2015. Weekly candles wicked below during the week of Oct 21, 2019; but closed above (first instance of pushing below this since start of trend). Current weekly candle opened below trendline. Every previous...
Appears to have simply a test for resistance at previously broken support zone in the 9400s. Simply an over-exaggerated move, typical of BTC, which overshot this level and retraced below it. If 9400 level is not reclaimed, expect retest of zone created by .618 and .236 fib retrace and fib extention using 2017/2018 highs and lows. If this level is reclaimed, expect...
Best case, symmetrical(ish) triangle with next low around 4-5k. Worst case, descending triangle with next low in the low to mid 3k area.
Symmetrical triangle: flip a coin, this could break structure in either direction.
Descending triangle: 1k-2k within spitting distance when support breaks, return to 200-500 area not impossible.
Overall volume is declining.
ETC/BTC appears to have completed a market cycle, and could enter a sideways period of accumulation before starting a new cycle. A potential entry based on a precursor to a possible golden cross is also present. 34EMA has crossed above 50SMA, and candles have closed above both. Good time to accumulate here, and wait for the 50SMA to cross above the 200SMA.
Conditions are ripe for a pullback and continuation, which could potentially form a handle. I would look to enter when a candle closes above the top of the cup after a handle is formed. If you're more ballsy, around the potential bottom of the handle.