Most people that know or have followed me for the few days I’ve been on Hive are not going to be expecting my Saturday post to be a Leo Finance post. Which makes it even more fun to be taken by surprise especially if you enjoy crypto or trade-based content. I'd like to think price action and technical analysis is just one of my many developing skills and interests.
After my rather unpleasant experience in the futures market, I’ve taken a break, one that might be a very long break in fact. For the time being, I’ll keep doing my technical analysis and try to improve my analysis and my discipline. Whiles I do that, you guys will be the unlucky people to read about the probably bankruptcy-leading analysis of this novice trader.
So after a month or so of being away from the market, I’m just going to do my take on what I find on the charts. Don’t take this as financial advice unless you want to lose money for sport lol. Keep in mind that this is an amateur doing this analysis so it’s pretty basic and probably very wrong analysis too lol. Enough chitchat, let’s get into it.
Isolating the most recent price action and looking at short-term price movement, there’s a higher high and lower low pattern going on so we’re bullish on a short time frame. The market seems to be recovering into a bullish rally after the small accumulation phase after the intense bearish rally in April-June.
However, if we zoom out a little and take a wider price movement into consideration, there’s a chance this long-term bearish bear market is not over yet. We see a dynamic resistance that price has failed to break and hold since November last year. During this bear market, there has been small pullbacks, one particularly that seems a lot like the one we’re witnessing now and it is not entirely wrong to say that we might see a replay of old price action now. After a wide accumulation February-April, price got rejected by the dynamic resistance. In my opinion, the next few days will determine whether we’re really out of the bear market.
As we sit, one of two things will happen. Price will either break, retest and hold this dynamic resistance(in which case, it’ll be safe to assume we’re looking at a new bullish market), or get rejected by the dynamic resistance, attempt to retest it, get rejected again and the bear market continues(in which case we can only expect further doom.
Like I said already, these are the thoughts and analysis of a novice trader. It’s up to you to this with this information what you like, but I’d advise you not make financial decisions based on my analysis or anything I’ve said. Have a great trading day!