We are seeing the first signs of some market structure forming after the brutal dip on the weekend. Short term momentum still leans slightly to the bearish side, but mid-long term is still looking very very good.
Now onto the LTF structure. For the total crypto marketcap we see a descending triangle forming. More likely than not these patterns break to the downside, but since everything has been so low maybe this becomes a fakeout pattern and reverse us to the upside.
Either way I have targets outlined for both scenarios.
For the downside target: The 3.1T level is our current support. If we start closing candles below those level it is likely to see outflows of $100-150B and you would want to see bull hold the $2.95-3T level.
For the breakout target: Here there are two measured moves. Of you draw from the mouth of the triangle it would give us a breakout target of $3.33-3.35T which would also be our green trendline that has been so important for so long. If you use a flag extension target that would give us a breakout move of around $3.5T.
This is a 2H pattern so watch for either a break of our downwards sloping resistance line or a break of our $3.1T support level.
Now onto the LTF structure. For the total crypto marketcap we see a descending triangle forming. More likely than not these patterns break to the downside, but since everything has been so low maybe this becomes a fakeout pattern and reverse us to the upside.
Either way I have targets outlined for both scenarios.
For the downside target: The 3.1T level is our current support. If we start closing candles below those level it is likely to see outflows of $100-150B and you would want to see bull hold the $2.95-3T level.
For the breakout target: Here there are two measured moves. Of you draw from the mouth of the triangle it would give us a breakout target of $3.33-3.35T which would also be our green trendline that has been so important for so long. If you use a flag extension target that would give us a breakout move of around $3.5T.
This is a 2H pattern so watch for either a break of our downwards sloping resistance line or a break of our $3.1T support level.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.