I've Exited the Remainder of my Bitcoin and Ethereum Positions
That was a fun ride while it lasted. I hope you took profit along the way. This is one of those pivotal moments where we must trust the chart, and not our emotions. The intermediate uptrend is no longer intact, in my opinion.
As previously discussed, $2k was going to be a significant resistance area on $ETH. $BTC lagged so badly during the rally that it was only able to retrace to $25k where it was rejected.
Below is the Ethereum chart which has shown relative strength and printing much cleaner than Bitcoin. I expect the selling to follow-through if we break below $1600.
August 19, 2022 - $ETH daily chart showing trend disintegrating, along with next support areas
Zooming in for Better Resolution
u/espressolover18 asked me in a recent comment chain how we can tell if a pullback will bounce back vs. break through. The short answer is we cannot be certain beforehand. However, by zooming into the lower timeframes--this is relative based on your time horizon--we can often get a better view of what is happening at the front lines. That is to say: the battle between buyers and sellers.
If you have been following me since I began writing these posts, then perhaps you may have seen the writing on the wall. There were clues leading up to today's massive dump, some of which I have discussed previously. Below is the 4h chart of Ethereum with what I feel were key moments in the recent price action.
August 19, 2022 - $ETH 4-hour chart with notable events/patterns
Rather than just telling you with the benefit of hindsight 20/20, I encourage you to reply in the comments with your answers.
Have a good weekend and take care.
Disclaimer: Not financial advice. For educational purposes only.
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