I've been keeping an eye on just about every cryptocurrency news source I know of looking for the catalyst I mentioned in the
January speculation article, and unfortunately, I just haven't seen it. There's been interesting developments, but right now we are at an equilibrium between the bearish effects of the
China crackdown, the bullish effects of recovery, as well as other minor catalysts. Unfortunately, our future is looking very uncertain.
The trend over the last couple of weeks has been a weak upward one with a pretty reliable support, but just yesterday, the markets broke under support-- a very ominous sign. Although there is a pretty good possibility we will still make it up to the area I marked "Crash Zone" in the
last article, at this point I have very little faith that we will see the market rally I was originally hoping for. Keep an eye out for a capitulation into what I call the "Accumulation Zone" (650-800). In the past, the high volume in this range acted like nitrous oxide for the markets; any trend is just accelerated, and I think if this "Bearish Crossover" under upward supports sinks into the accumulation zone for too long, it's "Once More Unto the Breach."
So what are the odds were going back into the breach?
High. In fact, higher than I'd like to admit. With the
FBI dumping 25 million dollars worth of Bitcoin into the market, we actually ended up with the opposite kind of catalyst I was hoping for. If the government ends up actually trying to dump the coins responsibly, which I doubt they will, sentiments of the traders will still send the markets into a downward spiral. If the government decides to dump the coins like morons, which would be par for the course, we'll end up with a 25 million dollar sell wall, plus absolutely pessimistic traders.
