Alt coin market Cap, Retest or Bull Flag
In the previous analysis i showed that alts were in bad shape short term. That uptrend was from past months was about to break but eventually it never broke the first support zone on the daily chart, bouncing up from that zone to rally as it did past week.
So now it looks like it turned the past weeks into a bull flag and this week we had the break out. Also looks as if that trend line still give some resistance. Question now is, are we doing a retest of this weeks breakout, or is it all just a retest of the break of the uptrend.
In case we do drop coming days, there is still a lot of room to remain bullish. A scenario is what i have drawn on the right. If we don't see a huge dump, but stay inside that potential wedge, big chance it will rally again later this week. That would then be the second retest of the bull flag breakout.
For the trend to remain bullish, think it may not get below that big green zone. Because if it would drop below it, big chance the bull flag breakout has failed and could therefore see a counter move to the downside.
So at the moment it all still looks good, just should not drop below that green zone anymore. Those thick blue line on the left show the bullish structure from past months. Each time when breaking a resistance zone it become support later on. Something we have been seeing in almost all the markets lately. So for the long term, think that line should not break anymore.
For Bitcoin it's still less clear, that one is still in the big consolidation. So if that one fails, despite others looking pretty decent, it will of course drag everything down with it.
Previous analysis:
So now it looks like it turned the past weeks into a bull flag and this week we had the break out. Also looks as if that trend line still give some resistance. Question now is, are we doing a retest of this weeks breakout, or is it all just a retest of the break of the uptrend.
In case we do drop coming days, there is still a lot of room to remain bullish. A scenario is what i have drawn on the right. If we don't see a huge dump, but stay inside that potential wedge, big chance it will rally again later this week. That would then be the second retest of the bull flag breakout.
For the trend to remain bullish, think it may not get below that big green zone. Because if it would drop below it, big chance the bull flag breakout has failed and could therefore see a counter move to the downside.
So at the moment it all still looks good, just should not drop below that green zone anymore. Those thick blue line on the left show the bullish structure from past months. Each time when breaking a resistance zone it become support later on. Something we have been seeing in almost all the markets lately. So for the long term, think that line should not break anymore.
For Bitcoin it's still less clear, that one is still in the big consolidation. So if that one fails, despite others looking pretty decent, it will of course drag everything down with it.
Previous analysis:
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