Hi there. I want to share with you my thoughts about the cryptocurrency market for the next days/weeks. I've been studying the market in depth, and I think there is a great possibility that this happens.
I want to make it clear that this is a possibility and that there is nothing 100% sure
Well, let's begin:
1- Total market cap
A few weeks ago, I noticed a head and shoulders here, when market cap was 500 billion (sorry for that paints, I cannot find this chart at TradingView).
31 Jan: Market cap = 500 billion, head and shoulders confirmed
6 Feb: Market cap = 285 billion.
Well, we can think that correction is over. But, the minimum target of the head and shoulders is:
Total market cap ATH (head) = 831 billion. Head and shoulders neckline ≈ 500 billion.
Market cap didn't reach the minimum target because the bottom was 285 billion. This days, market cap went to retest the neckline, which is very common in this pattern to continue till the target:
2- Bitcoin
The market cap drop would mean a bitcoin drop. So, let's analyze bitcoin.
I see this falling wedge that I think is not completed (PD: don't look at the dates, it's hard to estimate)
This pattern can be seen in Ethereum chart too:
Reasons why I think the '' E '' wave has yet to be completed
1- If you see at the Fibonacci levels, the golden pocket (61.8-65%) it was completely surpassed. This means that there's a good possibility to touch the next level (78.6%).
2- Hidden bearish divergence (1 day candles). This is a huge divergence:
3-Bearish divergence (4h candles) + death cross about to happen. This divergence is less important than the previous one, but it's important too:
4- The head and shoulders that I mentioned in the first section
5- MACD crossing down and RSI pointing down (12h candles):
6- The altcoins analysis matches with this analysis (Alts/USD). I will try to share with you these analysis in other posts.
Fundamental analysis :
-I have readed that in mid-March there will be a G20 meeting to discuss the regulation of cryptocurrencies:
This could generate a lot of fud the next few days.
If you liked this information and it has been useful to you, please, I would appreciate a vote and share it.
