As mentioned in the previous update, we did reached the 4.8-5k region (even overshoot our targets) with the reasonings given by us properly. Hope you liked that update and got an insight of how market makers mould this market.
Coming back to the current situation, we believe that it's going downtown from here. Following are the reasons for the bias.
1. For the bull run to start market makers will need two things, minimum retail traders & accumulation. And both of these conditions are yet to be met. This mini bull run from 3.5k region gave retail traders a hope of reversal so they are still holding tight. And accumulation hasn't happened yet so we believe that market is yet to do some drama before a clear bull run.
2. No proper bottom signs as such on 3100 and more than that a manufactured pump which leads us to believe that it was not quite a bottom.
3. Why should we dump till 1.8-2k region? It'll be a treat for market makers to watch retail traders bleed and simply give up in despair. Most of them will give up and take the exit gate at around 2.2-2.5k region. There'll be a small percentage of people left who'll eventually give up after a long accumulation phase shown in blue box.
4. Why won't we break the 6k resistance? Simply because once 6k gets broken we'll see a huge influx of buying and Bears will loose their control from the market. If we talk about probability, there's only 10% chance of breaking 6k currently. Bears have been in control for almost 15 months and they will like to continue for next 6-7 months at least.
So, here's all the reasonings for this analysis. Hope you get benefitted from all of this.
Do visit tychelab.com in case you want us to do auto-trading for you based on these analysis.
*not an investment advice, consult your advisor before investing in Cryptos.