Good evening all!
The total market cap is currently ranging even though it has had a large bearish candle on the 4 hourly charts. I cannot predict the market however, I can put a few psychological indicators together and estimate the most likely event to follow.
The most recent move can be seen as a breakout of a bearish flag formation. we are still in a range however, this pattern sets a target that will see the price breakout of this consolidation area if the bears are able to stay in power.
Range explained: The support and resistance levels are placed using the fib retracement on the daily chart, these levels happen to be the strongest levels of support/resistance (50% and 68.2%) thus any move below/above would most likely result in a continuation/reversal. My opinion leans towards the bears as the overall market is bearish and my indicators show strength in the bears.
The 972B price had been tested a couple of times and has been solidified as a strong level of support\resistance to break in the future, as it added confluence in the strength of the bears. This Level is to be carefully watched on the way back up.
If the market had to remain healthy after this dramatic decline in a short period, I would like to see a retracement up to the 944-942B price in order to have more confidence in the flag breakout as well as a prosperous decline to the potential target which lies at 867B
. The 944-942B level acts as a strong middle point in the consolidation range and thus will make a great reflection point before the price continues downwards.
Thank you for your much-valued time! Please feel free to give me your opinion and like the article if you found it interesting.
@TradingView
The total market cap is currently ranging even though it has had a large bearish candle on the 4 hourly charts. I cannot predict the market however, I can put a few psychological indicators together and estimate the most likely event to follow.
The most recent move can be seen as a breakout of a bearish flag formation. we are still in a range however, this pattern sets a target that will see the price breakout of this consolidation area if the bears are able to stay in power.
Range explained: The support and resistance levels are placed using the fib retracement on the daily chart, these levels happen to be the strongest levels of support/resistance (50% and 68.2%) thus any move below/above would most likely result in a continuation/reversal. My opinion leans towards the bears as the overall market is bearish and my indicators show strength in the bears.
The 972B price had been tested a couple of times and has been solidified as a strong level of support\resistance to break in the future, as it added confluence in the strength of the bears. This Level is to be carefully watched on the way back up.
If the market had to remain healthy after this dramatic decline in a short period, I would like to see a retracement up to the 944-942B price in order to have more confidence in the flag breakout as well as a prosperous decline to the potential target which lies at 867B
. The 944-942B level acts as a strong middle point in the consolidation range and thus will make a great reflection point before the price continues downwards.
Thank you for your much-valued time! Please feel free to give me your opinion and like the article if you found it interesting.
@TradingView