Let's Start at the Top
BTC traded back in the 50’s for the first time since November 1st. Granted, we were ok with filling the gap on the CME Futures chart but it looks as they got a little out of control in the process. This is the exact area we have as support on our Weekly Chart and if it turns out to be nothing more than a liquidity grab – all is well.
ETH hit a low of $4108. That also just so happened to be exactly where the 50 Daily EMA was sitting. Coincidence or not? The thing about that is that the 50 EMA for ETH doesn’t exactly mean further upside. All will depend on the bounce that we see.
DOT had a peak drop of around 15% and fell out of a channel that it has held for about two months. Now, if by the end of the day there is nothing more than a wick in its place – no harm no foul but if this continues down then the loss for DOT can be significant.
LTC was amongst the biggest losers. LTC was just trading near $300 and is now trading at $234. The Peak drop for LTC was 15.5% but LTC has lost 25% from the local high which was only a few days ago.
Pullbacks are Healthy
Pullbacks are often considered healthy for trend progression. Sometimes they can be seen in advance and other times they sneak up on you. Luckily, this one we caught in advance and was able to post about it yesterday before any of the drama.
That being said, we haven’t quite broken any real bullish structure just yet. The overall macro trend remains up and this could very well just serve as a liquidity grab and a way to get some good entries.
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