TOTAL view on the Global Crypto market

TOTAL view on the Global Crypto market

BTCUSD is looking like trending upwards after several bullish impulses. Let’s scale into the bigger picture and find out:

  • where are we now
  • what is next

I use the TOTAL chart (above). TOTAL – is a special instrument. It shows the crypto market capitalization index, calculated by Tradingview charts.

I use the Renko style in order to: remove noisy movements and focus on the big moves.

Let’s read the story from chart

  • 1] The downward channel on deep background. The bearish trend within 2018 year
  • 2] Bullish efforts in 2019 to breakout through over the red bearish channel. A green circle represents the activity of bulls to get control over the market. The successful breakout above the top red line confirmed the dominance of bulls. The crypto industry raised above 200B Cap level and stated. 200B – is too small for Crypto World.
  • 3] FOMO bullish Culmination in June 2019 when Cap achieved 360B. Since that moment, price of coins moved down and pushed TOTAL again under 200B. But what is interesting.
  • 4] The volumes are huge on down-wave. Let’s assume it was Panic Selling Activity – the Instance when Professionals absorb cheap instruments (coins, stocks, currencies).
  • 5] Current rally pushed up TOTAL above 200B level again. This major zone confirms its support for the crypto industry. 
  • 6] Technical SHS pattern also produces confidence for bulls

OKAY, what is next?

Will the violet circle of strength from December 2019 be the new violet circle of strength from December 2020?

Why not? I’ve described some bullish facts already above.

And here is another one from mister Elliott and his wave theory.

If Dec/2018 lows and Jun/2019 highs form the impulse wave 1, then Dec/2019 low is new higher low and the end of correctional wave 2-3. Point 3 perfectly matches with Fibo.

It is more clearly visible on the Wave chart below (the green zone is the level [8] of support). 

If described suggestions are true, then we are at the beginning of new impulse wave 3-4. In Elliott’s structures, this wave has much power. Do you know, where classical wave theory has the target for point 4? Look at the number [9]. It gives projection to… 34500. OMG 😲

Let’s see how bulls can handle breaking above the red line overhead.

Yes, You Can Become a Professional Chart Reader

To build success in any business, you should rely on things that really work.

In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.

Download free books, to understand how can you apply the Laws and convert charts into profitable setups daily!

Enter your email to Download books

Start building your success with Chart Reading method. Let’s not go back to what wasn’t working anyway.

No spam is guaranteed.