- Bitcoin price fails to impulsively rally after breaching a triangle consolidation.
- Ethereum price is back underwater and will likely trade range-bound before falling further.
- Ripple price continues to fall. A $0.25 XRP token is highly probable.
The crypto market shows early evidence that "Crypto Season" will not commence. Although the call was made for bullish volatility, new evidence suggests Market Makers are not done enticing traders before they send prices lower.
Bitcoin price targets $16,000
Bitcoin price’s failure to break from the triangular consolidation is early evidence of a future liquidity hunt targeting the $16,000. Last week Bitcoin traders took their first papercut by attempting to join a bullish breakout with a target in the mid $25,000 region. Unfortunately, the call for Crypto Season was short-lived. The triangular pattern seems to have been another smart money trap meant entice bulls to enter the market.
Bitcoin price has not fully invalidated the bullish scenario as the triangle invalidation level at $18,550 has yet to be breached. However, subtle cues signal that hope in the market will suffer a bloodier blow than taking an early papercut loss.
A Fixed Range Volume Profile indicator confounds the idea of a plummet to new lows as the BTC price breached through the congestive volume range but closed below. Auction Market practitioners who understand Wycoff Theory will likely reverse their positions to take aim at $16,000.
Bitcoin currently trades at $19,928. Invalidation of the downtrend is a break above $22,000. If the bulls can reroute north, they may be able to rally towards $25,000, resulting in a 30% increase from the current Bitcoin price.
BTC/USD 3-Hour Chart
"Aaccording to a chart posted by an analyst at CNBC, Bitcoin's correlation with Invesco QQQ, an ETF that tracks the Nasdaq 100 Index, has reached a score of 0.894, the highest level in nearly three years. It is worth pointing out that a score of 1 would mean an exact correlation" –
Felipe Erazo – Social Media Manager & Analyst @FXStreet
Original Tweet @TheDomino