Crypto Focus: We’re Seeing Price Continue its Rebound
Another mixed week traders. We started the week with declines that started last weekend and dragged into the week as sellers looked to have taken control. In a positive twist, buyers emerged on Wednesday and stopped the move lower. We saw an average-looking spinner bar that day, but it shifted momentum, and buyers set up a nice day on Thursday with just over 7% added to the top 10 and 7.90% to the top 25.
The week centred on the continuing fallout from what’s been dubbed “the Crypto Winter” and the collapses of Three Arrows and Celsius. These two were big players in the industry, and their failures are still sending jitters through the industry. Things look bleak for leaders of TAC, as with last reports suggesting outstanding loans won’t be able to be repaid. Reports also noted the directors of TAC could have gone into hiding. Both were reported by articles on CNBC this week.
Continuing to move on with the positive, today we’re seeing price continue its rebound with new two-day highs on the CRYPTO10 and CRYPTO25 indexes. As usual, opinions are divided on whether we will see a new extension lower or if we could be in a technical pause that could turn into a rebound. We are going to break down bitcoin and put forward or ideas on what we would like to see happen, to say yes, we could have a rally or the warning signs that we could see a new extension lower. There is talk from other analysts that Bitcoin could still have to make one more leg lower before it could find a bottom. The general lower price area is seen from 15,000 – 13,000.
This is a slightly longer outlook for Bitcoin, but we feel that the current position and pattern is important not only for the next step in BTC but also for Crypto, as we all know that Bitcoin still drives most of the top caps in the market.
Incorporating some of the points above about one more leg down this can be seen in the chart with price currently sitting in a consolidation pattern in two downtrends. We can see a triangle around the current consolidation, but we can also see two clear key levels of support and demand holding the current price action.
Price has also lined up nicely with a return to the faster downtrend. The OBV also shows a pattern we have seen in the recent declines. And like price the OBV has also returned to its downtrend. So it is rather simple for us, break the triangle and break support. We could be seeing the start of a new extension lower. If buyers can break above resistance and through the fast downtrend, we could be looking at a deeper move higher.
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