Snipers, you have to see what’s happening
in the cryptocurrency market this Saturday
as we have a candle low 470,
the monthly open.
And this is no surprise.
We know this is an extremely important
support level that we want to hold
if we want to get to 49, 700.
And so I’m liking what I’m seeing.
It’s the weekend.
It’s the most manipulated,
which means that there’s a likelihood if
we gap up enough that we could see price
action back to the downside as we start
to see the traditional
markets open up on Monday.
So you know, of course,
we want to take everything
on the weekend with a grain of salt.
But right now, inside of this range,
I think that this is
what we talked about yesterday.
We had this bullish flag formation,
and I wanted to see this breakout because
a breakdown would have
shown a lot of weakness.
And now the question is,
could we get to 49, 700 and retest
this extremely important level?
Because if we do that’s a very positive
thing for the Bulls,
knowing that we’ve already came tested it
once, tested it twice, broke above it.
Of course, this was on a weekend as well.
And then we came down,
coming back to this level,
knocking on this door for a third time,
the likelihood of this opening and doing
it with some more decisiveness
becomes more likely.
So that’s what we would want to see,
preferably for the Bulls.
And that would be an amazing
path for Bitcoin to take.
But I’m glad this broke out to the upside,
because at least we know that even if we
come down to the weekly open at 46,000
again to retest this level,
that there’s at least some strength here.
And that means that if we come to 44, 800,
there’s still some possibility
of volume coming in.
It’s still very light volume,
which means the path of least resistance
is always going to be sideways
for a little bit higher.
And so it’s a positive thing in the more
micro time frames in the
more macro timeframes.
What we could say is that Bitcoin is
probably going to just be range bound
for some time now,
maybe into the next month or two.
And if that’s the case,
that sideways price action may actually
Garner some more opportunities
in the altcoin market.
So that’s going to be
interesting to watch.
But if we come down to 47,000 again,
of course, breaking this level
is the first sign of concern.
We come to the weekly open at 46,000.
That’s another sign of concern.
But 44,800 is the real major support
right now that we want to stay above.
If we want to still assume that 49,700
on the table and with Bitcoin
range bound with light volume,
our altcoin thesis with Ethereum showing
weakness has actually been true.
So this is actually put them in a position
now with the US dollar value
in which Bitcoin came up,
it dropped shorts term and then it came
back up, broke out from the previous high,
but Ethereum failed to do so.
So we came up to 36.
50, but this time Ethereum was
only able to come up to 35.
30, which means it’s not performing as
well against Bitcoin
on the micro time frames.
And so when you’re in a macro thesis
of Bitcoin dominance in the early stages
of reversal, this is the type of stuff
that if we see more often on the micro
timeframes, also sell confirm the thesis
that Oak UID season has possibly
come to for the short term maybe.
And Bitcoin dominance is ready to move
to the upside and we’re going to see more
of these altcoins not perform as well.
We continue to see downside
action in the market.
So I think that was a huge puzzle piece.
Now a theme can say about 34 55.
I think that would only happen if Bitcoin
can maintain 470,
then that’s a good thing.
If Bitcoin breaches 49,700,
the likelihood of this coming back
up towards 4000 becomes high.
But realize this if we start to come down,
that’s when this Bitcoin dominance is
going to matter and Ethereum could see
further downside if
Bitcoin breaches 47,000.
And now that’s when you start having
the altcoins really affect your portfolio
and bleed your portfolio out
in a different market phase,
right that you may have not have been
expecting because you’re so used
to altcoins just always doing well when
Bitcoin does well and when
there’s a drop, it’s no big deal.
This time it could start being a big deal.
I mean, look at ETH.
It did not get to come up back to these
highs while Bitcoin was able
to and actually see the highs that it got
to in the more micro timeframe so that’s I
think something interesting
to keep in mind.
And with that Bitcoin dominance
is still being monitored closely.
Now if we get above the monthly open,
we could start to see some momentum
at 42 point 55% dominance.
And with the altcoins outside of Bitcoin,
we are seeing weakness exactly
what we expect to see.
What the thesis that Bitcoin
diamonds is ready to move up.
We fail to form new highs
from the previous highs in May.
That’s a major macro puzzle piece.
And now we’re starting to see the
likelihood of this actually being
the confirm trend in the more micro time
frames based on how Ethereum,
for example, is performing.
And we can even look at Maybe,
Cardano and some other altcoins.
And I’m sure we see something similar.
So interesting time.
I’m not going to go through
It’s the weekend.
Of course we will cover them more later.
But just remember the DXY did
close slightly to the upside.
It was showing some strength
but nothing yet that would really affect
the market on Ian, but SMP
500 is very interesting.
It’s an interesting point below this 50
day moving average where we’ve been able
to actually recover from this
level many times in the past.
So we want to really see some recovery,
as soon as possible with this stove 500
chart to assume that there’s
nothing abnormal here.
But if we start to come down to this
100 day moving average at 43.
30 for the Spy 500 Emini futures contract,
then that would be a concern.
So thank you all for tuning
the Cypress Channel today.
I hope you enjoyed today’s video.
I will be heading out to a destination
that I will share with you tomorrow.
And so I may not have a video exactly in
the next 24 hours, but just bear with me.
We’ll definitely have another
video out in the next 48 hours.
Let’s say just depending on the 17
hours flight and how that goes.
So wish me luck on that.
Thank you all for tuning in to the Cipher
channel today until next time.