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Crypto Tuesday: At a Crossroads

  • The crypto market is working its way to confluence where resistance and support are crossing one another
  • The last 12 months have shown these pennants turning bearish
  • The next couple weeks will either confirm or reject my thesis that the bottom is in and we’ve entered an accumulation phase

Bitcoin / $BTC

  • Macro timeframe shows multiple tests of resistance – more now than any other time over the last 12 months
  • failure of the pennant here could throw Bitcoin down to $10k
    • Unlikely for $10k if equities rally and the correlation between Bitcoin and the S&P remains the same.
    • Even with major exchanges going bankrupt, Bitcoin still hasn’t dipped below $17.6k
    • A rally here would confirm a period of accumulation

Polkadot / $DOT

  • Similar to Bitcoin, every pennant for the last 12 months has resulted in a major leg down
  • My $DOT is staked, so there is no point for me to sell here, but a dip below ~$5.50 could present new buy opportunities
  • RSI has been making lower-highs – this is bullish, so I am expecting some kind of breakout (not breakdown)
    • Especially since the RSI lows haven’t been rising

Cosmos / $ATOM

  • U-shaped patterns recognized in the RSI
  • Possibility for another move up based on previous patterns
    • Similar RSI patterns
    • $ATOM holding above the support range

Polygon / $MATIC

  • MACD crossed above the signal line – $MATIC breaks out of pennant
  • There’s a little more room for the leg up – RSI level could be oversold a little more than it is right now
  • Next level of resistance is at $0.94 but since price is struggling to break out of the $0.86 range, the likelihood of another 8% pump in price is becoming increasingly low

Algorand / $ALGO

  • Unlike Bitcoin and Polkadot, Algorand broke out of the 12-month downtrend and bounced off the old resistance line
  • RSI has lots more room for a move up
  • MACD line crossed the signal line – a buy indicator
    • A cross the other way would be a sell indicator
  • This is not the start of a “bull run”
    • This is probably confirmation of accumulation in a bear market

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Your investment strategies could differ from mine based on your risk tolerances, research, and time horizon, so I encourage you to do your own research as information provided by The Rebel Economist or Breaking Metrics should never be considered financial advice.

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