SwissMail

Crypto could get UGLY

Short
SwissMail Updated   
3 weeks ago we saw fakeout from major bear edge getting sent down to slide the edge until a minor uptrend was established

Now seeing this minor uptrend rejected on the parent downtrend resistance we can see that this downtrend's support and bear edge form an average level at the June low support
This level also matches the downtrend fib extension 1.618

What is most alarming is the latest rejection can also be interpreted as confirmation of 786 fib extension and intent for full extension...

taking the optimistic doom case we can expect ~20% down on total crypto cap
full doom call would be full extension ~40% down

Trade active:
It was inevitable
With FTX collapsing in real time and others trying to cook books while reducing balance and exposure before getting called

We see crypto finally breaking down again on stock correlation in what could be a bearish penant

Trade closed: target reached:
Bulls refuse to capitulate further

CZ tweet offers support and some relief

Possibly forming double bottom if holds

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.