The market is experiencing a correction at the moment, something much to be expected after the rally pass 52k. it’s still the beginning of the weekend and volumes usually drop over the weekend. Looking at the daily chart, the daily candle opened lower than the candle on the previous day which means we might still see lower prices before we can resume any upward trend. On the 4hr chart, we might be printing a possible ‘M’ or a double top and if we do get a breakdown on the 4hr then it means we might still see further capitulation. So what is the significance of the correction and what is there to watch out for? So far there has been confusion about whether we are officially in a bear market or even if Alt season is here and these has led so many analysts to put out predictions about different market possibilities. However what we need to confirm the stage of the market is simply price action. The correction has brought price action into ranges, going beyond the 50k level , printing a bearish divergence and capitulating back into the 40’s. This means that we are seeing price consolidation at this point, and the market is building support at the 40’s level. However price needs to stay above this trend line to validate a possible breakout. if we close below the 40’s or if the trend line is broken, it means that we might be going back into possible short term bear trends and for prices to revisit higher levels, buying momentum and volume among other factors needs to come back into the market.
Going by the predictions of veteran trader Ann Bargy, If wyckoff is sill in play then we will be seeing price action consolidation for a few weeks till a confirmed breakout happens. Ann says that what we need to pay attention to is volume, momentum, buying pressure and fundamental news that will restore both retail investors and institutional investor’s trust in the market. Ann has a very good understanding of the market and I suggest that anyone serious about cryptocurrency investing and trading as well as learning technical analysis should contact her on telegram https://t.me/AnnBargy or follow her on Ig ann_bargy