This is an important time for the Cryptocurrency market. In fact we are at a pivot point for major Cryptocurrencies as stated in our article from last week. Therefore, we publish the ‘latest and greatest’ update on the state of Cryptocurrencies at press time.
Most important, we are going to answer the question top of mind for most readers and subscribers: Is the cryptocurrency market turning Bearish in June 2018?
Short answer is: No, at least not yet. But the line in the sand is clear and the chart below shows clearly how (1) Cryptocurrencies are close to a major pivot point (2) We are seeing what looks like a decent opportunity to enter this market rather than a Crash.
However, investors need to be objective by understanding that if the index drops below the green channel and does not recover quickly (say 48 hours) it might damage the uptrend and it might take a while for prices to recover. As much as the cryptocurrency market is notorious for its quick recoveries, a real crash could be devastating and we actually haven’t seen a cryptocurrency market crash yet.
That’s why we always urge our subscribers to be clear about their timeframes (how long they can hold): The price would usually go back to test the breakdown level (which then becomes a strong resistance) and provide a decent exit point. Otherwise, if you can’t hold for a long term, or you do not quite see (read believe) the potential in Cryptocurrencies, better to cut losses short and wait for a better entry.
The Cryptocurrency Market is not Turning Bearish in June 2018
This is one of the charts we derived from our June 2018 Cryptocurrency outlook: top 8 Cryptocurrencies are still in a rising channel, at the bottom of the channel to be precise, and that makes for a great entry for the longer term.
Is the support going to hold? we believe so and that Cryptocurrencies are going to perform strongly in the second half of 2018. The higher lows annotated on the chart are important positive signs to watch.
The prices / index average has to start moving up, however, and, preferably, pretty soon, for this outlook to materialize. By soon, we mean within the next 4 to 6 weeks. This will be crucial for the uptrend to continue.
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Chart courtesy Goldchartsrus