Transcript – Major Cryptocurrency Technical Breakdown
What I have for you today is some cryptocurrency market review. Let’s dive in to the cryptocurrency digital asset space and do some review.
So first and foremost, we have Bitcoin, big daddy Bitcoin, on the board, and he had a really, really interesting position here. This is the daily chart, and this is an inverted head and shoulders. We did have a little bit of a double top. This lower shadow right here … once we took out that lower shadow and broke out of that trend-line, it was almost apparent that we were going to trade down to this level. And now, where we are at, Bitcoin’s either going to pop up a little bit, or break down again.
This is a really fun bracket trade, a super-exciting situational location to be in, and here’s your long-term moving average. I do think we’ll probably have more of a bearish breakdown than a bullish breakdown, at least presently. But, as it stands right now, I’m in the 100s still. Going to act as a little bit of resistance. But the other good news is you have the 100 on a weekly chart slowly propping and grinding this one higher. So, this is the 100 on a weekly is at 5,000 now.
So again, there’s certainly the chance that Bitcoin does break down and trade all the way down to that price. People will really flip out and lose their wigs, but that’ll probably be a relatively okay place to buy. Again, longer term folks, I still plan on accumulation. This is an accumulation phase. The biggest question in my mind is just simply how long will it take before we have a really nice rally again? And it could take a year or two, but between now and then, you still have really fantastic opportunities to make money in the both the long and the short movements, right? Because you can short cryptos, and this breakdown right here … you got this inside candle on the second of August, entry here, stop there. That’s a solid, solid move right down to a support.
So anyway, Bitcoins at a very pivotal location.
Now the other cool news is Ethereum trying its best. Here’s ETH. This is also a daily chart, and you got a killer hammer candle just a few days ago with a decent amount of volume. So, we have a pennant pattern right there. I love the volume. I would just simply be enamored by a bullish break above this hammer candle right here with volume coming in. Here’s that weekly, and again, that weekly chart looks a little ominous, very small doji. We only have a few days into this week’s session, but again, the 100 simple Ono weekly is going to be there to prop it up as a little bit of a support, and that is super key level. So, if we do break down, yeah, it’ll get a little bit rough for a bit, but I think we can come out of that alive most likely.
Anyway, Ethereum, I’m going to be keeping an eye on it for it to bounce bullish, and if it doesn’t, right, if it takes out this hammer especially with a close, if we take out that move, then Ethereum’s likely going to go lower, but also me personally still accumulating Ethereum longer term, and keep in mind we’re still not quite as low as we got in April. So, if it does bounce and then we get a really good rally, that would be fun. This was a huge move, right? This was a almost 200% move right here on Ethereum. No big deal, from April to May. So again, you can still make some good money in here. We’re just looking for what type of movements we’re looking at.
Litecoin’s very interesting because Litecoin is also one of the first cryptos to be hanging out at its weekly 100. So, talk about risk/reward. You got killer risk/reward here on Litecoin. Really good space, solid area, very, very key, and you’re going to get offered some fantastic risk/reward down here. This purple line still acting out as what seems to be a little bit of a downtrend. This upper trend line did break down and just keeping an eye on it and see if it’s going to bounce and what she might be doing.