Hi guys, whats coin on?
Here is what I think it will happen and why...
After majority of people entered short positions, market makers have decided to move market up, with a goal of liquidating as many of those short positions as possible. They print a bull flag and a lot of bulls hop in, crypto twitter create massive bull atmosphere, like we've never have been in a downtrend, and then for everyone to believe this is the truth, they run another wave up, just for a move to be more convincing. We can saw this happen many times before during this downtrend, 3 wave move up, and then, after majority of bulls have joined, they crash a market, this time, to liquidate all the long positions that confidently entered on a margin.
We can see on a log chart, that we never actually broke out of that downtrend channel. What we did for sure, we did breakout downwards, right trough that support trendline which exist since 25.3.2017. What this looks like to me is like a textbook retest of that trendline, where in the same time will be an upper resistive trendline which bulls will try to break for the fourth time. At the same spot there is also a huge resistance area between $9k - $9.5k, and if bears are not done yet, we will see another great crush which will be followed by panic and driven by fear, and after that maybe a long period of accumulation.
On the other side, bulls can breakout trough that area, but it will need a lot more money to enter tha market for this to happen. We will see.
Pay close attention around that area and be carefful going long there if you are bull. For bears, that would be perfect area to go short.
Here is what I think it will happen and why...
After majority of people entered short positions, market makers have decided to move market up, with a goal of liquidating as many of those short positions as possible. They print a bull flag and a lot of bulls hop in, crypto twitter create massive bull atmosphere, like we've never have been in a downtrend, and then for everyone to believe this is the truth, they run another wave up, just for a move to be more convincing. We can saw this happen many times before during this downtrend, 3 wave move up, and then, after majority of bulls have joined, they crash a market, this time, to liquidate all the long positions that confidently entered on a margin.
We can see on a log chart, that we never actually broke out of that downtrend channel. What we did for sure, we did breakout downwards, right trough that support trendline which exist since 25.3.2017. What this looks like to me is like a textbook retest of that trendline, where in the same time will be an upper resistive trendline which bulls will try to break for the fourth time. At the same spot there is also a huge resistance area between $9k - $9.5k, and if bears are not done yet, we will see another great crush which will be followed by panic and driven by fear, and after that maybe a long period of accumulation.
On the other side, bulls can breakout trough that area, but it will need a lot more money to enter tha market for this to happen. We will see.
Pay close attention around that area and be carefful going long there if you are bull. For bears, that would be perfect area to go short.