Market Overview + Technical Analysis #6
Content:
Market Overview-
The Current State of the Market ($BTC)
What to Expect Next? ($BTC)
Technical Analysis Review-
$WOO Technical Analysis
$LINK Technical Analysis
TOTAL Technical Analysis
Closing Thoughts
Market Overview-
The Current State of the Market ($BTC)
Despite a recent correction that brought Bitcoin's value down to around 25k from its impressive peak at 30k, the overall trend for the cryptocurrency remains bullish. Bitcoin has demonstrated resilience in the face of volatility, often rebounding and reaching new heights after significant pullbacks. While short-term fluctuations and corrections are common in the crypto market, they can present buying opportunities for those who believe in Bitcoin's long-term potential. Although further correction and consolidation may be expected in the near term, Bitcoin's underlying fundamentals and increasing adoption by institutions and investors provide a solid foundation for its long-term success. Just this week Blackrock filed for a Bitcoin Trust with the SEC, more on that here. By staying attentive, adaptable, and strategically navigating through market movements, investors can position themselves advantageously and capitalize on the exciting opportunities offered by this evolving digital asset.
Figure A
2. What to Expect Next ($BTC)
In a continuation of the previous analysis, Bitcoin recently encountered strong resistance at the 30k order block, which we discussed in April, that may be found here. Bitcoin attempted to breach this level but was ultimately rejected, indicating the significance of this resistance. As a result, Bitcoin's price has retraced and is currently testing the support level at 25k, as previously mentioned. It is crucial for Bitcoin to hold this support to avoid a potential breakdown into the support box. Traders and investors should closely monitor price movements at this critical level, as a decisive break below 25k could trigger further downward momentum. Depending on the correction it may lead to a further sell-off, but it looks like most of the FUD has worn off, and the upside is more likely. Managing risk and implementing appropriate strategies remain essential, considering the inherent volatility of the cryptocurrency market.
Figure B
Technical Analysis Review-
$WOO Technical Analysis
At the time of writing this $WOO trades at $.179. The chart used below is from Huobi as it displays the full price action of $WOO for this technical review. To preface this I want to disclose that I shared my thoughts on $WOO on March 4th earlier this year. In the market update, I covered that one this range may be important to monitor. Since then, we have continued to range sideway for about 400 days after a 90% retrace. I personally believe there may* be one more flush if that, but overall this bottom appears to be concluding. As expected, price is retracing and it is best to see how price fans out before the next big move plays out.
Figure C
2. $LINK Technical Analysis
At the time of writing this $LINK trades at $5.26. The chart used below is from Coinbase as it displays the full price action of $LINK for this technical review. To preface this I want to disclose that I shared my thoughts on $LINK on April 15th earlier this year. The current range has had a sweep of the low, which is GREAT! This can finally give us conviction based on the weekly close. If the 400-day range is re-entered with a wick like the $WOO example above, then this may* mean it has locally bottomed. As mentioned before, I have continued to accumulate $LINK at the current level, because of the fundamentals. I still believe this will perform exceptionally well over the next cycle.
Figure D
3. $TOTAL Technical Analysis
As shared in the previous market update which can be found here, we spoke about how $TOTAL was geared up to take us to the range high but it FAILED LOL. That is perfectly fine because this allows for more accumulation while chopping out impatient investors. Currently, we are sitting in an order block at the ~1 trillion zone and it’s holding pretty well(orange squiggles). The final confirmation will be again, the range reclaims because we have already chopped under the range low for so long(400 days). Remember, things will never go in a straight line, the market makers RELY on tricking you, and you are their liquidity. Therefore it won't be as simple as it sounds, but the reclaim(again) is important just like how $BTC reclaimed the range low at 17.6k before going to 25k, and how $WOO reclaimed .14 before going to .28. (two examples of range reclaims that were shared in the last market update are found here)
Figure E
Closing Thoughts
As an analyst in the crypto market, my unwavering optimism regarding the future of cryptocurrencies is supported by compelling examples which can be found in the research tab. We are currently witnessing an unprecedented surge in the adoption of cryptocurrencies by institutional investors and major companies. For instance, renowned financial institutions like JPMorgan Chase, Citigroup, Bank of America, Goldman Sachs, and SO MUCH MORE and how they have embraced cryptocurrencies, some offering their clients exposure to digital assets. Additionally, multinational corporations such as Tesla and Square have made significant investments in Bitcoin, further solidifying its mainstream acceptance. Despite the regulatory crackdown, crypto is growing globally and will make its way into the biggest capital markets here in the USA.