#33 29 Aug 2022
In the last market update, we were pointing at the creation of the rising wedge inside the ascending channel and the possibility of an end of the summer bull run until the orange box. Price action played out as described in our last update and now we are under the ascending channel or bear flag.
Now we have 2 different scenarios:
1. The bullish one would be to create an accumulation range around this zone as we did at the beginning of 2019 and start the new cycle from here. Note that accumulation zones can take a long time.
2. The less bullish scenario (Not bearish as that is still inside the normal market cycle) will be to break down the current support and go for the next level, which will be the 161 of the inner bear flag (or ascending channel).
To have the right levels, we have created new charts as we have had new tops to measure and these will be further modified in case we go to lower levels. This new chart will be the one to follow until we find the bottom.
If we take a look at the cycle chart that we presented weeks ago, we can see that we are still inside the lower range, so we are probably near the bottom, to be created in the next 3-4 months.
Dominance reached the blue box again, and altcoins began to fall accordingly. The probable scenario now would be BTC falling or ranging, while alts will fall even more until Dominance reach again a resistance inside the same channel during the next months.
ETH achieved the resistance box and then began to fall, following BTC.
As we have done with BTC, we are creating new charts for ETH for the next months as we have now new points to measure.
As we can see in the chart, we are now supported into inner levels and seems that we are creating a falling wedge.
The bullish case scenario that would go together with the scenario nº1 of BTC explained above, would be ETH breaking out of the falling wedge to begin the new accumulation cycle in this level.
The less bullish scenario would be to break down the ascending channel and go to the bear flag 161 level, probably at the end of the year.
For the moment we are following the steps that we have been waiting for all year.
The good news is we are not having surprises on the cycle and if that continues with the same behavior we could be forming a bottom in the coming 3-4 months.
As always, zooming out, understanding cycles, and having patience is the key to success in the years to come.