Crypto bearish?! No, everything is fine!

After a nice and long summer holiday I'm back for you all to help you out here and there to understand what is going on in the crypto markets. We have seen 7 consecutive green weeks and thus its time for a correction. Should you panic!? No.

Market maker vs. leverage and stop losses
The total crypto market (altcoin market displayed above) is looking very bullish regardless of the fast correction from this week. Traders have been stacking longs with high leverage and high profits and of course at some point its time for the market maker to bag his profit. Each time these fast corrections happen the same emotion is triggered: fear. With exchanges running low on ETH supplies and in general having sold truckloads of any coin, its is normal the market maker needs to bag up again. Fear is the perfect instrument for that together with a solid algorithm that hunts liquidations and stop losses. I haven't checked how many bulls got rekt on this dump but I bet there would be hundreds of millions of liquidations and that is free crypto for the market maker, which thanks you yet again for not taking profits or going long at a local high. Now, after a quick look on tradingview, it looks like most retail is going short right now, which is again a lovely deal for the market maker. Why?

TOTAL2 to 2 trillion
Well I expect a bullish reversal on Monday with the weekend providing choppy action. We could see some more downside to get rid of weak hands and in general provide some more liquidity to the market maker's longs. Yes he went long all the down from the previous highs back in April / May and he's building longs as we speak. I expect Monday or latest Wednesday for the market to reverse to the upside unless there is big news that prevents a bullish scenario. On the bigger timeframe we could be seeing something like a cup and handle forming although this is far from confirmed but it is a pattern I am looking out for. I do expect altcoins to smash their previous total cap and head for the 2tn mark. From there we can re evaluate, for now there isn't much to do in this market; I suggest you have a nice weekend and come back on Sunday night. :)

IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.

MORE INFO: have a look at my previous analysis on why trends always reverse for further reference.

Commento:

UPDATE: we didnt move anywhere since I posted this. Sure a bit a volatility but nothing special. September is historically a bad month for crypto, thus a retrace like this isnt uncommon especially given we pretty much doubled in total cap since July. We could keep ranging for the rest of September and seeing a breakout by the end of the month unless there is news that prevents a bullish scenario. That Litecoin / Walmart news was a joke and dont get distracted from such nonsense. Also dont get distracted from a green or a red candle, try to have a long term / overall scope like you have on this chart. You’d see we didnt get anywhere; down or up. In order to regain bullish action we need to clear 1.26tn and hold it as support for at least a week or two and clearly trade away (to the upside) from that mark. If so, we also need to clear 1.4tn and hold that as support to confirm a historical breakout for the alt market. We’re not far away but it will take some time… Lets keep an eye out and be patient to see where the market wants to go…