Is The Crypto Market Really Dead? October 07, 2018

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It seems like that the crypto market was left by the investors and traders, right now we have a low volatility and an indecision. Bitcoin has failed to resume the minor rebound and now it seems exhausted again.

I’ve told you in the previous reports that the Bitcoin could start a broader sell-off if it will fail to move higher in the upcoming days.  If you’ll take a look on the previous reports on Bitcoin, Ethereum, Litcoin, Ripple, EOS, you’ll notice that I’ve talked about important upside movements, but only if my conditions are met, otherwise you should stay away for now and wait for fresh trading signals.

Bitcoin has developed a minor chart pattern on the Daily chart, so you should wait for a breakout to see the potential direction. Price has failed to reach and retest the upside line of the minor pattern and now is almost to reach the downside line. It continues to stay above the 6425 static support and much above the 6000 psychological level.

I’ve said in the previous weeks that we need a bullish momentum very quick because the rate could drop again if it continues to stay near the current levels. If you’ll take a look at the previous reports on Bitcoin you’ll notice that I’ve said that this could still be a temporary rebound and only a valid breakout above the 50% Fibonacci line of the descending pitchfork and above the WL1 could signal a larger upside movement.

A valid breakdown below the 6000 and below the median line (ml) will announce the Bitcoin’s collapse, while another false breakdown below the 6000 level will really signal an important and larger upside movement on the medium to the long term.

Ethereum has developed a minor chart pattern as well. It has failed to make a valid breakout from it and now could challenge the downside line. I’ve told you in the last weeks that the rate could still approach and reach the second warning line (WL2) of the former ascending pitchfork despite the valid breakout from the former Falling Wedge. Personally, I would have liked to see a drop towards the lower median line (lml) of the descending pitchfork before the rate would have started an important upside movement. A drop followed by a failure to retest the lower median line (lml) or a false breakdown below this dynamic support would have given us a great buying opportunity.

Right now is risky to go long because we may have only a temporary increase and the rate could drop again after a valid breakdown below the WL2. However, a false breakdown from the minor pattern followed by an important increase and a valid breakout above the 249.93 could signal a potential breakout above the downside 50% Fibonacci line as well.

Litecoin is still trapped between the outside sliding line (sl1) and the lower median line of the ascending pitchfork. It has failed to retest the sliding line till now, but I want to remind you that a valid breakdown will signal a further drop. You can see that I’ve placed a trade setup on the Daily chart, so personally, I believe that only a valid breakout above the WL1 of the major descending pitchfork and above the inside sliding line (sl) will announce a larger upside movement.

LTC/USD is also trapped between the 49.144 and the 69.374 levels, so maybe it will be better to stay away and wait for a valid breakout from this extended sideways movement.

EOS/USD continues to be undecided after the breakout above the outside sliding line (SL) of the major descending pitchfork and now is almost to reach the second warning line (WL2) of the descending pitchfork.

I want to remind you that we may have a potential upside movement if the rate will make a valid breakout above the median line (ml) of the minor ascending pitchfork and above the upside 50% Fibonacci line of the major descending pitchfork.

A potential drop could come if the rate will fail to approach and reach and retest the median line (ml) again.

Conclusion

If the Bitcoin will drop again in the upcoming period, it will force the crypto market to crash and the cryptocurrencies will start a significant sell-off and many crypto and projects will die.

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