Sell-off! What will it take to find the new bottom?First of all, I would like to thank all of my followers for your messages, questions and your support! It is unbelievable that in just under a month I gained over 380 followers! 🏆
So, it is Friday - how will we close this week?
Although I have seen sooo many people unhappy about the recent price drop, I would have to say: Please don`t worry. It is a good thing.
Just think about it, all cryptos have been in an unstoppable bull run since November! At some point correction was inevitable. Of course, it would have been ideal to have a sharper 3-day sell-off and get back to business right after. But markets do not work that way. There will be uncertainty days in limbo and there will be a few "dead cat bounce" days too. This, unfortunately, means that a small dip is stretched to a week. And unfortunately, a week of poor market data can trigger a further sell-off.
The key questions remain: How much longer will we remain in this "sell-off" phase? What will it take to find the new bottom so that the market could move on?
How much longer will we remain in this "sell-off" phase?
For all the data analysis that I have done this week, there are only 2 things that stand out for me: Uncertainty and low demand. The last month of super over-hyped and over-priced market ran out of steam. Even our usual high profile hypesters are quiet at the moment. Everyone is waiting for the dust to settle. Since it is Friday, it is likely that many investors will be closing their books at a loss today and it would be absolutely reasonable to expect that this trend will continue into the weekend.
What will it take to find the new bottom so that the market could move on?
One interesting fact caught my eye - if you look at the last 7 days data. There were a few "blitz dips", meaning that it dipped for a few seconds and bounced right back. Almost as if testing what is the bottom to lead the market down the road. Sadly we already know the reason for that. From my previous posts, we have learned that exchanges do that to liquidate their customers and make a quick buck! But, if you take those few "under a minute" events out of the data, you would see that market has been consistently going down. Maybe what we need is a 20-30% price dip without instance bounce? Maybe just letting it settle for a day or two and pick up demand from there would get us out of this limbo?
Today's technicals:
Position is Neutral (probably just keep an eye for the next large dip to buy the bottom)
Forecasted highs are at the mid-way point of ETH $1630.
Basically, anything above $1630 will be overpriced.
Forecasted lows are plenty: Current support at ETH $1400, last confirmed hard bounce of $1350, $1280 fbb, and $1180 - a must-buy!
Have a great Friday! 🔆😎🍹
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