— Why didn’t we write anything for so long?
— It has been very hot out, can’t write when it’s so hot =)
Hello everyone! This is our first crypto market review this summer. We still adhere to our wait-and-see stance quietly watching the developments in the market.
In our last review, we predicted the beginning of the correction and advised you to fix the profits. Our forecasts have come true and those traders who followed our advice have not lost their money. The price is now moving in the descending channel.
On the hourly chart, moving average EMA50 ($7,781) is below the EMA100 ($7,923) tending downwards, and MACD indicator is in the negative area. This picture is a signal to sell.
The bears have repeatedly tried to push the price down below $7,500 level located very close to a strong support level of $7,432 (see the chart). Further downward movement targets for the bears will be $7,200 and $7,000.
The “head and shoulders” pattern appeared on the daily timeframe. If it gets complete, the price can go down to levels starting from $6,400 and below – we are closely monitoring the situation in the market and will definitely warn you about any changes in the trend. However, we have seen the “head and shoulders” pattern on many occasions in our practice and it does not always complete. Therefore, it is may be ignored by the market this time again “knocking out” most of those who prefer short trading.
At the same time, on the daily chart, ЕМА50 runs above ЕМА100 giving a buy signal. ЕМА50 acts as a support at $7,234 level, which will hold back the bears’ pressure. MACD indicator is tending towards the negative area.
Although we did not publish any reviews in June, out trading strategy remained unchanged. On the contrary, a short break let us take a little rest from the market. After the growth in the spring, the market has been somewhat overheated in the first summer days and is currently dominated by bears.
Wishing profits to all of you! Follow our reviews, tomorrow we will tell you about the major crypto market news over the week.