Cryptocurrencies test resistance areas and fail so far


Most of the cryptocurrencies have the same type of price action and pattern and so far they are all failing that pattern. The selloff that took 20% out of Bitcoin isnt necessarily over quite yet, we have yet to see confirmation other than a cross of a moving average and even that was nothing to write home about. When you see a massive selloff as we did last week it takes time for that move to be digested by the markets. You cannot instantly call a bottom, especially since there are so many other bearish qualities to this market at this time. I wish I could say BTFD (Buy the Fing Dip) however it doesnt feel right, we still have lower highs in place, we have yet to break any good level of resistance and the volume has been pretty lackluster except for the actual bottom itself so we could get sold into again.

However not all is lost, you have to be ready for an uptrend to resume as well, this can consist of a higher low or some really constructive sideways action on lower volume. At that point we just have to wait and see what the market does, up or down, if up then we go off to the races. Long term Bitcoin and altcoins are bullish however in the intermediate term there are too many mixed signals and so far the bear is beating the bull.

 

 

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