It’s A Game Of Patience Now – Crypto Piece
The Stage Is Set
Bitcoin continues to hold the 21-day and 55-day EMA after a slight rejection at the 200-day MA and losing the 9-day EMA. The bullish structure is still very much intact with higher highs and higher lows in place. Another positive is the weakness in Dollar after 11 straight green weeks.
2020 VS 2023
An interesting take on the current sequence of events is comparing 2020 to 2023. Bitcoin seems to be following a similar timeline to that seen in 2020 following the Pandemic crash. This begins with the April run-up phase followed by a summer consolidation, then a 2nd run-up followed by a summer top, then comes the September chop before an Oct – Nov rally. A rally in these 2 months is further supported by the confluence in different Cycles presented in last week’s article that can be found here. Please note that even though today’s structural timeline looks similar to 2020, we’re not expecting Bitcoin to make a new high in 2024, like it did in 2021.
Another commonality between 2020 and 2023 is the reverse repo injections in China. Current levels have typically been a good sign for liquidity, which is a big positive for Bitcoin. For our subscribers that are interested in tracking this indicator, it can be found for free on Tradingview under indicators by typing “PBoC Liquidity Injections”, and is provided by tedtalksmacro.
2 Altcoin Setups To Watch
The selection of altcoins can be tricky because everyday there are new coins being released. With that being said, a few important aspects to consider is the team, tokenomics, fundamentals, technicals, on-chain data (if available), and the narrative associated with the project. In order to skew the odds in the favor of investors/traders, it is important to invest/trade quality projects rather than chase hyped memecoins or other overly-hyped projects. Even though there are many altcoins that currently have very attractive setups, 2 particular ones of note are Chainlink (LINK) and Oasis Network (ROSE).
Chainlink (LINK)
Chainlink has been in an accumulation range since the past 74 weeks i.e., 518 days. It recently broke its macro downtrend line. While a retest of the macro downtrend line is on the table, this accumulation range provides a good opportunity for investors and clear range boundaries for position traders. Once this accumulation range is left, it’s likely going to be met with a strong move to the upside, especially now that the CCIP is launched on the mainnet (a product that was much awaited by the community).
Oasis Network (ROSE)
Another setup to keep an eye on, especially for traders, is Oasis Network. This crypto saw a 200% + pump beginning from 2023 as it broke its macro downtrend line. The rally then got sold into and has given back most of gains, once again entering the accumulation zone. This region is typically where price tends to catch a bounce. To add further confluence, Oasis Network just broke out of the downtrend that began in May 2023 and has just retested this downtrend line today.
Please let us know in the comments below if you would like to see On-chain analysis, more altcoin setups or any other additional crypto-related insights. Until next time!
Disclaimer - All materials, information, and ideas from Cycles Edge are for educational purposes only and should not be considered Financial Advice. This blog may document actions done by the owners/writers of this blog, thus it should be assumed that positions are likely taken. If this is an issue, please discontinue reading. Cycles Edge takes no responsibility for possible losses, as markets can be volatile and unpredictable, leading to constantly changing opinions or forecasts.