Nice momentum flowing back into the Cryptocurrency Market this week, but it would be foolish to believe the traps are over just yet.
Following price finally finding support at the $19,200 handle, an intra-day drive up to the $19,800 territory was initiated, which created the initial wave of buying momentum returning back into the market following the bearish descent from the $22,400 high. As we covered with our members, this initial drive to $19,800 was very likely a trap, where the $19,000 zone was projected as a region of interest for a sudden downside spike to liquidate long positions located around the $19,200 floor. Following the release of the CPI data the market instantly struck this $19,000 zone and wiped out the longs with a deathly blow before almost immediately returning back to the pre-CPI trading range.
A floor is now beginning to form around this $19,2000 handle and should slowly aid in commencing the next upside rally, where we are currently watching for the $21,800 handle to be revisited after this next wave of trickery is over.
Our first member-given of $20,400 was achieved yesterday, fulfilling a crucial retest and wipeout of CPI-data shorters in the process.
Buyers are now returning back into the market, where we’re currently observing the $20,200 - $20,400 zone for price to begin finding stability to return once again back to the $19,200 region.
It’s highly unlikely $21,800 - $22,000 will be achieved without first seeing another tempt to play around the $19,200 floor at the very least.
As you can imagine, upon such a drive to $21,800... the next series of “bull run is back” narratives will return. From a higher timeframe perspective, this is simply just the top of the range, nothing to really get excited over in the slightest.
Keep eyes peeled on the $18,400 - $18,200 range. This is an area of interest for a major wipeout to take place prior to any real upside returning. Whilst the market remains range-bound, it’s crucial to consider these additional risks and have them mapped out just in case they do take place. We frequently give warning areas to our members in order for them to be prepared for worst-case scenario bursts of additional manipulation.
Our analysis is continuing to flow near-flawlessly at present. These traps from the market are becoming more predictable by the day.