The markets are in panic mode, and we are seeing both moves and charts for traditional assets that look like shit coins. In times like these we need to zoom out and focus on the bigger picture. We need to check if the main trend is still intact.
This is the chart I showed in January in my yearly review report. The pattern depicts a large symmetrical triangle with two to three touch points on each leg.
When I look at charts with a long time frame, I usually take a line chart to filter out the noise (wicks). One can argue that we traded below the lower leg on an intra-week basis. This is a warning sign.
Still, the overall structure, or pattern, is still intact. On the side of the lower leg, we need to print a weekly closing above 4.7k to keep this pattern alive.
It will be important for the bulls to take out the 5.9k level, which is kind of at the middle of that triangle. This level has acted as the support/resistance flip line several times. To keep the „Lambo“ dream alive, we need to see a weekly closing above the 11k level.
In case all hell breaks loose and the global recession takes bitcoin down with it as well, the next significant support level will be at around 3k.
We are still within a large decending triangle. If we are able to break above $48 I will look for long set-ups again.
It looks slightly more promising for bottom building in the shorter timeframe. $35 is the average POC (point of control), and if we manage to trade above it for a longer period of time, we have a chance of attacking the resistance at $48.
I have also taken a look at some of the smaller coins, but since most of them do not have enough data to plot a weekly chart with, it does not make sense to share it with you.