With more clarity and safety on the regulatory front, the resumption of crypto euphoria is set to resume.
With that in mind my VSA analysis on the daily shows clearly a bear exhaustion. Well supported demand from any meaningful dips.
The bearish climax candle shook out all the longs. Right after that strong dips bounced back in the form of a daily bearish pinbar.
If that dip had strong selling behind it then the bounce back up would have been followed by more selling, but it didn't. This is a classical demand swamping supply side.
The final clue I'm always looking for before a safe rally(safe in terms of no more sellers willing to sell) is a market test.
In his case testing supply. If the dip attracts more selling then there is more time needed to shake them out and cover. However a successful test consists of a pinbar shaped candle
dipping down and back up on low volume. This indicates that sellers are at bay and it's safe to assume they won't halt a clean rally.
SpeculatorsTrading.com
With that in mind my VSA analysis on the daily shows clearly a bear exhaustion. Well supported demand from any meaningful dips.
The bearish climax candle shook out all the longs. Right after that strong dips bounced back in the form of a daily bearish pinbar.
If that dip had strong selling behind it then the bounce back up would have been followed by more selling, but it didn't. This is a classical demand swamping supply side.
The final clue I'm always looking for before a safe rally(safe in terms of no more sellers willing to sell) is a market test.
In his case testing supply. If the dip attracts more selling then there is more time needed to shake them out and cover. However a successful test consists of a pinbar shaped candle
dipping down and back up on low volume. This indicates that sellers are at bay and it's safe to assume they won't halt a clean rally.
SpeculatorsTrading.com