VARAUSD - Bullish Outlook This chart is not pretty and to the untrained eye looks scary. The thing to remember is that the Channel, even after BTC dumped quite a lot, is still not broken. Actually, not even BTC's channel is broken but more about that later.
These knee jerk reactions are all thanks to our friends at the Federal Reserve bank who like to pretend that the US Dollar is more valuable than it really is. While there is a lot of value left in the dollar it will diminish a little at least in the coming months (See my post earlier today regarding DXYUSD).
Why am I still bullish? Simply put we are near the bottom of a range and a lot of liquidity is available here, a very suspiciously large amount. What I know about order walls is they are meant to be filled. Even those large exchange walls are meant to be filled eventually since that is how exchange's buy coins that they lend out for leverage to enterprise members. While they do receive a lot of free tokens from projects the exchanges have to buy coins for a lot of their reward programs which makes the sell of these coins a wash i.e. break even since they take them out of the market, give them away and then they are sold.
I can tell you right now that there are no short traders placing bets at this price point and it wouldn't take very many to crash this market some. The reason why there are not short traders taking this trade is simply put that very order wall I just mentioned above. It is suspiciously large and wide and it speaks to future plans of this coin to take off and may even break all time highs at some point. At this time I remain long and patiently await the next move to the upside.
