Greetings people,
I would like to talk today about one graph that is usually ignored by most of the traders, but which gives the best signals overall for general direction of the market.
As we can see on the total crypto market cap, the price went down exactly at the same resistance as the last time, forming a pattern of ascending triangle which would be invalidated if the price drops lower.
Ascending triangles usually break upwards, but we are talking about huge ascending triangle which could be completed at the end of the May, which would be ideal scenario for the bulls. Longer time consolidation with a bullish pattern would paint nice bottom, but these next two months will be a huge fight between bulls and the bears. The most important fight for the bulls now is painting a recognizable bottom and attracting more smart money. Investors are still not sure bears are in the woods, but for the first time over a year there is some hope for the bulls.
Crucial points to watch is the ascending triangle support, anything below that would invalidate it, and the third touch with a bounce would give higher chances of completing the pattern. If the ascending triangle fails, the last hope for the bulls would be the red line support, anything below that red line is huge bearish sign and continuation of a macro trend, and of course new lower lows.
The price currently found very nice support on EMA 50 which served as resistance for many times in the past, if the bulls manage to find the support here, there is even a higher chance that the market is going to break upwards.
I would like to talk today about one graph that is usually ignored by most of the traders, but which gives the best signals overall for general direction of the market.
As we can see on the total crypto market cap, the price went down exactly at the same resistance as the last time, forming a pattern of ascending triangle which would be invalidated if the price drops lower.
Ascending triangles usually break upwards, but we are talking about huge ascending triangle which could be completed at the end of the May, which would be ideal scenario for the bulls. Longer time consolidation with a bullish pattern would paint nice bottom, but these next two months will be a huge fight between bulls and the bears. The most important fight for the bulls now is painting a recognizable bottom and attracting more smart money. Investors are still not sure bears are in the woods, but for the first time over a year there is some hope for the bulls.
Crucial points to watch is the ascending triangle support, anything below that would invalidate it, and the third touch with a bounce would give higher chances of completing the pattern. If the ascending triangle fails, the last hope for the bulls would be the red line support, anything below that red line is huge bearish sign and continuation of a macro trend, and of course new lower lows.
The price currently found very nice support on EMA 50 which served as resistance for many times in the past, if the bulls manage to find the support here, there is even a higher chance that the market is going to break upwards.
