It's four hours into the new trading day candle, and we're already down almost 10%. Unfortunately, the signs don't look much better that things will reverse anytime soon. Here's why...
We just saw THE LARGEST bullish volume bar we've ever seen on the 4-hr chart. This volume bar was an extremely bullish looking hammer with a lower wick over 10x the length of the body. Bulls were buying the dip (myself included) and we seemed like we were on our way to seeing some upsides. We've now seen two large bull volume candles forming hammers which had zero follow through by the bulls, and the gains were extremely easily replaced due to increasing bear volume.
As I predicted earlier, ETH would test $875 which it broke and found support at $852. It's now not that far of a reach down to the $771 support. Whether or not the bulls hold this level is anyones guess. It seems the indicators aren't a factor at all today.
As the day progresses, we might see a rally, but after two failed bull hammers with decent volume, I'm still expecting more pullbacks. The typical expression is "stairs on the way up, elevator on the way down." What we're seeing here is definitely an example of that.
ETH will find support and rally, but I'm unsure if we'd see a higher high anytime soon. CCI just crossed 0 on the daily and daily RSI is now below 50 and heading lower. I think there's still some downward momentum with FUD.
Enough for now...thoughts?
Happy trading!
Great post and I believe this is a real possibility in the upcoming future! Especially with all the panic selling going on in the market. Crypto is the wild west and it isnt for everyone, that is why times like these are great to weed out the weak! Happy trading and good luck to you!
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It's a lot of new and inexperienced investors too so panic is real. If you can predict it with any sort of realism, it's great to load up and get the bottoms to increase those profits!
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Completely agree, it is helping out the market in the LONG run!!
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Thanks for the insight - the crypto markets have turned red. It seems as though they are all following BTC's lead. Reg. Ethereum, I think that the previous demand level @ 800 might prove to be interesting. We will have to wait for bulls to be getting back in around this level - price action will dictate. If we see some long, strong green candlestick formations it could be a sign that the short-term correction has come to an end.
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Yep! They've been due for a WHILE!! The run up last year was insane and absolutely parabolic. Yea, we'd need higher highs and higher lows ALONG with volume! A rally on low volume will have me worried and means there will be a longer harder pullback.
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And BTC is going to test $5200. Which is good, I needed more.
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I agree! I had made a prediction BTC will test $5,000 this year....pretty confident it'll happen.
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I just wonder when the switch will happen and all the exchanges have to switch their master valuation to something besides BTC. ^^ Wonder what it will be?? :P
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I think it'll be a hybrid...lots of exchanges already have other pairs like an ETH pair.
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