This will be a crucial weekend, and it will be nerve wracking for both crypto bulls and bears. The bears will try to push Bitcoin, the leading crypto indicator, below $6k. On the other hand, crypto bulls will try to push Bitcoin to at least the $7k level. How will this resolve? Very simple, it will depend on the number of bulls vs. bears, a normal market dynamic. The top 6 cryptocurrencies chart shows why this will be a nerve wracking weekend for crypo investors, primarily the crypto bulls.
Before looking into the top 6 cryptocurrencies chart let’s first refresh our memories.
When crypto prices were crashing on Wednesday August 8th 2018 we wrote Ethereum Price: It Always Looks Scary Near Any Bottom.
” It is clear that the first crucial support level on Ethereum’s price chart ($350) attracted sufficient buying to avoid a breakdown. All in all, it really means that anxious crypto investors are going through the same feeling that millions of other investors have experienced over and over in the past: It feels scary near any bottom. ”
Moreover, the same day, we wrote Stellar Lumens Crypto Crash: Buy Or Sell Now? which concluded as follows:
” Based on the chart of Stellar Lumens we see that this triangle pattern which unfolded after the crash of January 2018 is a recurring pattern on most top cryptocurrencies chart. As long as this triangle does not break down there is no harm down whatsoever. An important part of the answer “buy or sell Stellar Lumens as a cryptocurrency” is found on the chart, but it’s not the only source. ”
All in all, our point of view was, and still is, that the crypto market did not break down. The crash was strong but not unusual. Ethereum did hold the important $350 level, Bitcoin recovered at $6.1k which still is reasonably above the important $6k level, and, more importantly, Stellar Lumens looked much more like a buy opportunity more than anything else!
Today, right at the start of the weekend, we see that the very short term cryptocurrencies chart show a bottoming pattern. Is this bullish or bearish?
It might be bullish, but the lows of Wednesday must absolutely hold. Note on below top 6 cryptocurrencies chart with a one-week timeframe what the bottoming pattern looks like. A couple of observations:
- Bitcoin looks relatively strong at this point in time. Ethereum so-so, ripple rather weak.
- Stellar Lumens looks really strong, in relative terms!
- The series of higher lows since Wednesday must continue.
- That is why the coming weekend will be so important. It really will be decision time!
Are you ready for an important weekend? For crypto bulls it will be nerve wracking, for the bears as well, that’s how it mostly goes near any bottom and when it is decision time.
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