BTC price action is still dictating the wider crypto market, so many positions are all down to how long it stays within the current range IMO.
Interestingly, despite a lot of the fear and hesitancy in the market currently while in an ongoing bear trend, there are some indicators suggesting we're entering buy territory.
Marked on the chart:
1: Price has come as close as it has to the VWAP middle line which on this chart started from the March 2020 crash. The VWAP tends to act as a magnet/repellent for price action.
2: The Elliot Wave detector has drawn a complete 1,2,3,4,5 + ABC correction, this could lead to the confirmation of the start of a new long term trend (bearish) or continuation of the main long term trend (bullish).
3: The fearzone indicator has flashed only the 5th buy signal in 2 years. This doesn't mean price won't go lower, but it does measure if the market has overreacted/moved too quickly, in this case to the downside.
4: RSI line is now oscillating between the signal line and the midline. Crossing the mid line would be more confirmation of a bear market in progress, a bounce off it would be sign of a relief really and breaking above the signal line would mean bullish sentiment returned.
5: The TSV (Time Segmented Volume) indicator has shown very little strength in the downwards action since November. While price has dropped 50% from the ATH of November, the volume has been nothing compared to the amount seen during the summer. it's last divergence was a hidden bullish one, the next one has the potential to be a Bullish one if price continues to drop and volume remains weak.
NOTE:
I've deliberately left off price targets and other indicators that are used for smaller time frames, this is just an observation and not intended as any trend or trade idea, more just a gauge of where the market/BTC is. It's also worth noting that in July 2021 the market cap dropped to around $1.18T, the recent drops dipped to just above $1.5T and have stabilised above $1.6T, this could be a sign that the heuristics of newcomers to the market see these drops as good buy opportunities and see anything below $40k as cheap, unlike many who were in the market before the 2021 bullrun.
Interestingly, despite a lot of the fear and hesitancy in the market currently while in an ongoing bear trend, there are some indicators suggesting we're entering buy territory.
Marked on the chart:
1: Price has come as close as it has to the VWAP middle line which on this chart started from the March 2020 crash. The VWAP tends to act as a magnet/repellent for price action.
2: The Elliot Wave detector has drawn a complete 1,2,3,4,5 + ABC correction, this could lead to the confirmation of the start of a new long term trend (bearish) or continuation of the main long term trend (bullish).
3: The fearzone indicator has flashed only the 5th buy signal in 2 years. This doesn't mean price won't go lower, but it does measure if the market has overreacted/moved too quickly, in this case to the downside.
4: RSI line is now oscillating between the signal line and the midline. Crossing the mid line would be more confirmation of a bear market in progress, a bounce off it would be sign of a relief really and breaking above the signal line would mean bullish sentiment returned.
5: The TSV (Time Segmented Volume) indicator has shown very little strength in the downwards action since November. While price has dropped 50% from the ATH of November, the volume has been nothing compared to the amount seen during the summer. it's last divergence was a hidden bullish one, the next one has the potential to be a Bullish one if price continues to drop and volume remains weak.
NOTE:
I've deliberately left off price targets and other indicators that are used for smaller time frames, this is just an observation and not intended as any trend or trade idea, more just a gauge of where the market/BTC is. It's also worth noting that in July 2021 the market cap dropped to around $1.18T, the recent drops dipped to just above $1.5T and have stabilised above $1.6T, this could be a sign that the heuristics of newcomers to the market see these drops as good buy opportunities and see anything below $40k as cheap, unlike many who were in the market before the 2021 bullrun.