Crypto Market Update 11/7/2022
BTC is ranging since the end of August. Not a lot has changed during our last updates, rather than we are still in the main FIB level and that could be a sign of accumulation or just a trap before a final capitulation.
Dominance is creating a rising wedge. This tends to be a bearish pattern, which would mean that dominance will break down, at least for some days.
If that happens while BTC is ranging, altcoins could have a possible small run. But the validation of the pattern has to come together with the breakdown of it.
ETH is trapped in the golden pocket of the bear flag. It will follow what BTC is doing and in that case, it looks like a bear pennant which means a possible drop to the lower level, the first gray box.
The market is boring and there is no change in the last 2 months.
We are monitoring S&P500 closely because it has arrived at the main MA200W which historically has been a support in natural cycles without a recession.
If we finally break down that MA, all markets, including digital assets, will fall. So we are in a crucial moment.
For instance, if this level on the S&P500 acts as support, we can see a relief rally in all markets at the end of the year.