So I have had this idea that the total market cap itself might be forming a cup with handle pattern. At the very most i can see the rounding bottom and now it seems we have begun to retrace.
Typically we don't like to see too much of a retrace on the way down something around a 50 percent retrace from the low to high is preferred.
On the chart i have noted that right now we are at the 61.8% retrace from the low to high but that's only on linear scale if we check log scale you would see that we are sitting near the 50 percent retrace.
Log scale does however ruin the left side of our rounded bottom which is why i have kept the basis of this trade on the linear scale.
A measured move if we ever did break out bullishly would bring the Crypto market cap very close to all time highs which would be a great time for any of the cryptocurrencies worth their weight.
Too deep of a retrace downwards could ruin this set up but it's still worth looking at.
Ignore the trendline i plotted on the MACD it was drawn on a smaller timeframe. *
Typically we don't like to see too much of a retrace on the way down something around a 50 percent retrace from the low to high is preferred.
On the chart i have noted that right now we are at the 61.8% retrace from the low to high but that's only on linear scale if we check log scale you would see that we are sitting near the 50 percent retrace.
Log scale does however ruin the left side of our rounded bottom which is why i have kept the basis of this trade on the linear scale.
A measured move if we ever did break out bullishly would bring the Crypto market cap very close to all time highs which would be a great time for any of the cryptocurrencies worth their weight.
Too deep of a retrace downwards could ruin this set up but it's still worth looking at.
Ignore the trendline i plotted on the MACD it was drawn on a smaller timeframe. *