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Market Analysis

Weekly Technicals Pro - Volume 62

Updated: Aug 31, 2024
Published: Jun 21, 2021
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The market entered extended periods of Extreme Fear on three separate occasions:

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Market Sentiment

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  • The Nov/Dec 2018 BTC break to ~$3,000
  • The Mar 2020 Black Swan
  • Now
Obviously, there would be more in the past but that is as far back as this set of data (Fear & Greed) goes. The former two, in hindsight, were extremely profitable buying opportunities when paired with patience. The question is: Why would it be any different this time?

Market Indexes

Total Market Capitalisation

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Today, the Total MCap is retesting the range low at $1.35T for the second time. This now represents an extreme high R:R long opportunity (applicable to fundamentally-sound assets only) because the invalidation is extremely close while the potential reward if prices bottom here is very large. The market is in a do or die situation right now where either prices bottom here and re-rally towards the upper end of the range at $1.7T or support breaks (i.e. daily closure under $1.35T) and the crypto market heads back to a valuation of sub-$1 Trillion.

Altcoins Market Cap

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The Alts MCap is similarly retesting the previous lows at $700B, as support, a closure under would lead back to $450B which represents the high set in 2017.

Bitcoin

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Bitcoin's price remains stuck in the same [$30,000-$40,000] range. As explained two days ago in Discord Pro, the mining stop and further FUD coming out from China would likely push prices back towards the range low (i.e. $30,000). Bitcoin still has some further room before the range low is hit which will probably happen since China woke up and chose violence towards crypto in terms of bans.

Ether

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ETH's price action is once again testing $1,935 as support. If lost and not enough demand is provided at these prices, then $1,420 would be next in line (the term "if" is important to pay attention to). Support holding however, can lead back towards $2,500 & $3,200.

RUNE

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RUNE has a central (irony) issue to solve in terms of price and that is: reclaim $11.50 on the weekly timeframe.

Why is it important? This is the level where price has been struggling with sellers in recent weeks and where the market structure changes.

From a daily timeframe perspective, RUNE still is on track for a test of $5.75.

SNX

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SNX has arrived to its support level of $7.50. This is the high set during the 2020 DeFi summer - we personally entered into SNX during the DeFi winter as price was correcting. Unless $7.50 is lost on the daily timeframe, SNX will probably see a reaction/bounce soon.

DOT

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On the daily timeframe, DOT has not broken $19.40 on a closure basis but that does seem plausible today. If the latter occurs, then a test of $15 would be next. Conversely, if price manages to pullback up and close the daily candle above $19.40 then $27 would be next. Pivotal day for DOT.

SOL

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As stated yesterday, a daily closure under $36 would lead towards $29 quasi-directly and that is taking place now. $29 should provide at least temporary support, whether it ends up being a dead-cat bounce or a bottom-setting bounce will entirely depend on the volume and how strong it is. Shallow volumes would mean that it is a dead-cat bounce.

SRM

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SRM sellers overpowered buyers at $3.79 and that is definitely not a bullish look for SRM. In fact, this indicates a test of $2.50 to be on the horizon. Each individual has a different risk tolerance and timeline and hence each individuals should plan according to their preferences.

FTT

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As stated in previous versions of Weekly Technicals, FTT's inability to cross $35 communicated that another test of $25 would be next and that is what we are witnessing now.

XRP

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XRP broke the [$0.79-$1] range on the 19th of June and chose a direction leading towards further downside which is rather steep going towards $0.47.

 

Disclaimer: THIS IS NOT FINANCIAL OR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

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