The weakend ahead
Cryptic ball: the merge ahead.
The consolidation I talked about in the beginning of the week continues to play out. US stock indexes are battling with key resistances, while bitcoin and ether are about to test crucial support levels - oh, what an interesting weekend this will be!
- Even if ETH is leading the crypto party now, BTC bulls are treading on thin ice if they allow the orange coin to fall any further. I've already seen some liquidation alerts today - a typical sign of mayhem, but also reversal.
- If you zoom out on the original cryptoasset chart, you'll see it has been falling for six straight days. More worryingly, losing $22.5k would mean the current bullish market structure - formed since July's triple bottom - is invalidated.
- Still, as explained above, ether is practically surpassing the role of the leader these days, and this token has some extra room to fall over the weekend without damaging the case for the bulls. But it must bounce at $1.7k!
- If that fails, prepare for a renewed bearish attack which may take the opportunity of the summer holidays to wreck some leveraged traders left and right. As usual, US stonks will give make or break this trade.
- But remember that often bitcoin has been leading global risk sentiment, especially when the US market is closed - as is the case during the weekends. Let's hope bulls wake up, but be ready for some temporary chaos if not.
All-in-all, I'm not much worried for now - at least until the Merge news are sold in mid-September. Because currently investors need to allocate their capital somewhere and no outflows are expected. But that may change in a month!
Chart art: the selling behind.
Three things: the trillion dollars below.
- The NY Mag covers the rise and fall of Three Arrows Capital.
- Hamz explains how ETH will have less sell pressure after the Merge.
- Ben Lilly analyses the current "softness in the markets".
Tweet tip: the predictions above.
Meme moment: the lol within.
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