- 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
- A 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
If you enjoy reading these posts, consider sharing ‘The Rebel Economist‘ with friends and family!
I dedicate a considerable amount of time researching the markets, so new subscribers are always appreciated (buying me a coffee is probably appreciated even more, so you have an option to donate a couple dollars every month if you enjoy the content). You can use the link below to share with a friend or on social media.
Subscribe to the Rebel Economist
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.