The crypto markets are holding steady, but where do we go next?
After a sharp selloff early last week, prices rebounded later in the week and are holding steady.
The total market cap is just over $200 billion currently and hanging in there:
(Source: https://coinmarketcap.com/charts/)
The last time prices went sideways for a few days, the bottom fell out.
Do we see similar price action again this time?
I am thinking no.
I am thinking no for several reasons, but one in particular is standing out when I look at several charts.
That being volume bars.
Take a look at this daily chart of Ether:
(Source: https://www.ccn.com/dropping-bitcoin-volumes-brings-minor-market-retreat-where-next/)
Pay special attention to those volume bars...
The bars are easily double or triple what they were just a few weeks prior and they are significantly higher than any other bars on the chart.
Do those look like possible bottoming bars to you?
They certainly do to me.
You often see out sized volumes at tops and even more so at bottoms.
The volume we have been getting this past week certainly looks like what we would expect to see during a market bottom.
Another technical indicator to watch is that MACD indicator.
As you can see it is starting to cross as well, which is considered a bullish technical signal.
Mostly though, just look at those volume bars down at the bottom.
Take a look at some older charts and look at the the volume bars at the bottom, you'll see something similar to what we are seeing right now at the bottoms on the charts.
Stay informed my friends.
