Cryptos: Recent Rally Looks Exhausted - Unless Bitcoin Breaks This Resistance
Tim Knight | Aug 02, 2022 03:17PM ET
Since this market seems impossible to hold down for more than a few moments, let’s direct our attention to the animal spirits of crypto to see what they’re saying.
We begin with Ethereum:
What I see in the chart above, in chronological order, is:
- A market which broke its support at $1706 and plunged quickly;
- Stabilized for many, many weeks and formed a bullish base (green tint);
- Completed the bullish base and ascended toward its $1706 resistance;
- Briefly got a little above resistance (red rectangle);
- Has slipped back down below
This movement has informed Bitcoin’s price action, shown below, inasmuch as Bitcoin got “inspired” by ETH and broke above its own bullish pattern—but only for about 20 seconds (arrow). It has now, as with ETH, slipped below its resistance level once more.
Unless BTC blasts past this resistance line, I think it shows the equity bounce is exhausted, and we’re all just marking time, waiting for stocks to smell the coffee.
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