Crypto Market Update
After reaching the main log level (see chart), BTC had a shy relief rally last week. For the moment RSI remains very oversold but possibly we haven't seen the bottom yet as we're still inside a bear flag for the moment.
The inner bullish movement can create a lower low inside the same range of the main log level, which at the same time could create a strong bull divergence on a bigger time frame. This might lead to stronger buying pressure than what we are seeing now.
We can bounce further from current levels, although this doesn't look like a V bottom as we had in 2020 during the covid crash, but more a slow capitulation like we saw at the end of 2018.
Looking at bigger timeframes and earlier percentages of retraces in a bear market, we are near a possible bottom on BTC.
For the long-term view, we have created a chart showing past bottoms (based on Fibonacci extensions) and tops, projecting this in the future we can see where the next cycle might bring us. As always, these are only possibilities.
Dominance found resistance at the top of the channel and signals now that it might retrace, to go to the lower level. It has been inside that range since 2021.
ETH bounced on the main level, and it is creating the same bearish pattern as BTC. It looks like it still has to find a floor after some consolidation around these levels.
We cleaned the old levels and left only the most important ones.
It looks like we are having signs of capitulation, as we had at the end of 2018. For the moment, we are bouncing on main levels, but there is a lack of volume which means that investors are not convinced to enter the market yet.
That said, we are arriving at the bottom line maybe in the next 1 or 2 movements where we should start to see bull divergences on bigger timeframes.
Slowly we are starting to see levels to begin to accumulate those projects that we believe the most, always thinking about the possibility of a major drop which is still probable to come.