The drop is now confirmed and yet, it is still early...
My fellow traders, all is good when we consider the chart, Ethereum's price and the bigger picture, nothing changes. But we are witnessing a retrace. This retrace will end in a higher low and I am thinking of time now, duration.
Initially I was thinking about the Fed meeting and this event being the catalyst for change, but the Cryptocurrency market is following its own cycle and for it to be super bullish later this year, all bearish action, all weak hands, needs to be removed now, today.
So the bearish action can fluctuate between just a few days, 3-5 days, to 1-2 weeks. That's my analysis based on past history, chart data and experience.
The retrace might not last that long though, market conditions continue to improve and Ethereum might not produce a lower low compared to Bitcoin. Bitcoin is trading pretty high and a correction can develop any day. Since Ethereum is already low compared to its ATH, there is less room for prices to move lower, makes sense?
The downside is always limited, SHORTing is riskier than going LONG. It is wise to wait for a new entry before buying more. Experienced traders are recommended to SHORT. This chart setup will change in a matter of days, and then the market will turn bullish again, long-term.
Thank you for reading.
Namaste.