The weekly close for Bitcoin the week before last came under the 200-week moving average was a pretty clear rejection of the rally.
Strong sell pressure came in before the FED meeting, the US GDP data release, and the corporate earnings reports.
The good news is that last week the market did flip bullish after all of this news came out. With the weekly candle closing above the 200 week moving average for the first time since early June.
It seems that this time the fed rate hike and bad GDP data were priced in, and that the corporate earnings were better than expected.
Remember, until proven otherwise this is a bear market and we could see a lot more volatility and sideways action. Yes, we will see some epic rallies, but we are very far away from the kind of strong reversal levels that would say things are changing. The 200 week MA is just the first step.
Bitcoin also just put in its monthly close. Finally a green candle! What is interesting is that the main sell off candle, looks eerily similar to the bear market bottom capitulation candles of previous bear markets.
History doesn’t repeat but it sure can rhyme! If we really rhyme, then we can expect a few months of sideways action before we see any real recovery shaping up.
The chart below shows where the downtrend line is currently lining up at. About $14,000 overhead. We are a long way from that. The best target for any further bear market rallies is $28,000 which is a major area of resistance.
BUT, there is still money to be made in a bear market. Don’t blind yourself. The months of pain lead most investors into ignoring opportunities. These bear market rallies can be huge. News still can move the markets.
A perfect example of this is Matic. It rallied 65% from the time I commented on it over on Twitter when it was crossing the 50 day EMA. That is a big win for a bear market rally. Even spot buys cleaned up. Anyone adding a little leverage like 2X or 3X made bank.
Follow The Money
Huge amounts of Ethereum has been withdrawn from exchanges in the last month. In fact, around 3.6 billion worth has made its way off of exchanges. Is this just big money buying an asset on sale? Lots of people swing trading The Merge in September? Don’t know, but the money keeps flowing into the market in spite of the prevailing sentiment.
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Don’t give up! I know bear markets suck, but there is still money to be made, the last week proves it.
You might just have to work a bit harder for it. But they are out there in the market.
This report provides more ideas than you will use, and that is ok.
But, I do hope that some of what I mentioned here will be useful for you.
All the best,
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TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.