This week, we had a substantial move in the crypto markets that wiped out $13 billion in market cap. There hasn’t been a solid news event. Mainly, it was short seller pressure and perhaps lack of interest.
If we look at some technicals, we can see that this “Shifting” channel illustrated by the Gold trend line I have drawn still has not broken. Awfully close, but not broken quite yet. The purple trend line has been brutal towards BTC, and Bitcoin has not been able to break out from underneath that descending trend line.
MACD is still in an ascending formation, and RSI is also in a wedge formation.
So here’s the thing – so far BTC has been going the route of most pain and opposite of some patterns. A recent example would be this small purple ascending triangle not holding and then breaking down. While logically the next step would be to complete this wedge to the downside, we could also just move sideways and break up. Bottom line, this 6k area is critical.
What happens if we do break down? It appears that we are just going to remain in this massive falling wedge before eventually breaking upm which makes me comfortable holding and putting a ladder down at 5.3k, presuming we get another run up to 10k. Of course, we need to break this purple trend line for this to happen.
Happy hodling,
Sherem