Hello again friends, I am pleased to bring you my report after the last few days of carnage on the markets.
Even the most technical trader should always be mindful of the fundamentals and check with themselves if it has an effect on the market.
So as a rare treat here is a little fundamental breakdown, just my opinion.
The media manipulated fudstorm really gave the newbies a run for their money, with the “China Ban” news regurgitated I think 4 times, the India news told in every bearish setting imaginable and naturally the cryptopians in the USA were FREAKING OUT (well some anyway).
As soon as America heard that it was going to be ok, and that the fed probably bought the dip, we saw the bulls piling back into the picture. So bubbles get created out of some misunderstanding, they pop and correct themselves (some need help from the media) and birth new understanding for many new market participants.
So fundamentally I would say the entire crypto space is still incredibly bullish and I am still a bull. (and a bear when I need to be)
Lets take a look at the very long term picture, I will examine certain events in the past to help us get an idea of where the market might be heading.
I know markets are very different than they were in 2013 and 2012, the reason I want to show this rsi is that we can clearly see the first drop in 2013 was met by the rally of 2014, before crashing and going sideways before the next bubble popped, where we find ourselves today.
Given all the bullish fundamentals, and there are really too many to mention – more positive crypto news every day, not even to mention the masses of people getting into crypto:
I am going to opt in for the first option (1st purple arrow) as a probability. Which means we could see the next major bull run this year taking us into 2019.
However please be mindful of the bearish pressure on the chart, I am pretty sure it will be a choppy ride until we recover above $8600, however it could be as soon as Feb 16th when Asia gets back from holiday.