David And Goliath In The Crypto Space
Tim Knight | Jun 29, 2021 10:42AM ET
The cryptocurrency space has had a tremendous bounce over the past week, following a very hard selloff. The jury is still quite out on this one, however. As of this moment, the flagship of the space, Bitcoin, is still perfectly pressed up against resistance. The more than 20% gain over the past week is substantial, but all it has done is proven that what used to be support is now resistance.
This can be illustrated with different coins. Take Algorand, for example, which has similarly bounced strongly over the past seven days, yet is now facing a drastically more formidable task with all that overhead supply I’ve tinted.
Taking a much longer view at the same chart, you can see the proverbial David versus Goliath standoff. Goliath, in this case, is the massive inverted head-and-shoulders pattern, which should be extremely bullish, whereas the small David is that tinted area that is trying to hold prices back.
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