Ethereum’s key 181.38 level is holding strong, Bitcoin showing an Inverse Head-and-Shoulder setup
Ethereum pushed below the major support, but it returned and Bitcoin has created a near breakout from an extremely bullish pattern. A great many altcoins are showing massive retracements in volume and price.
Honestly, it’s a beautiful image and chart. The evidence of a drop in short pressure is very evident by the laughably weak move below the 181.38 level. At the time of writing this (and taking the screenshot), Ethereum is sitting right on top of the channel, bottom of the Gann arc and the key 1/8th Major Harmonic of 181.83. This creating sufficient conditions to observe a violent breakout higher to test the 224 zone.
Bitcoin is also displaying a very awesome and beautiful chart. This inverse head and shoulder pattern is right against a crazy pivot in time (red verticle bar). That red vertical bar represents a stopping point for price action – the behavior is for prices to halt. The pivot in time is resistance in time to the trend in force. On both long and short-term trends, Bitcoin is in a bear trend. This time pivot creates a strong probability of a trend reversing. Additionally, price is trading inside a Gann arc and following the slope of that arc.
Oh, by the way, this crypto bear market is now worse than the -78% Dot-Com Nasdaq crash in 2000
Of all the news that was music to my ears, it was the most bearish news to date. Technicals have been pointing to a trend change for months, time is far ahead of price in that respect. Note on that: The proper equilibrium of time and price on September 13th is the price value of $11,025 as a high and $4,624 as a low. Considering the dramatic oversold conditions of the market, there is some bias towards the closest of two zones, the $4,624. But we need to be sensitive to how Bitcoin moves and the season we are in. Bitcoin, like all cryptos, can move a staggering amount in one day and we are right at beginning of the entire cryptomarkets seasonal bull phase – which can see Bitcoin and Ethereum make >20% moves in one day. On both technicals and fundamentals, there is evidence of a bottom.
What does this all mean?
It’s quite simple: We’re 80% down. In a Risk vs Reward scenario, do we have more reward up or down? Is the risk greater to the downside or to the upside?
It’s foolish to short or sell at these levels – very foolish. In a long-biased market like this, expect us to be at or very near the bottom.