Taking a look at the global indices market, we can see this a clear sign of a possible distribution occurring across the board. Starting with GERM30 (DAX) we can bullish momentum is clearly decelerating yesterday the 1D TF failed to make another higher high and instead formed a large head and shoulders formation, a break below the next support should push the price down to the low of the range. US30 made a bullish break above ATH which was followed sharply by a break back below and a bearish engulfing candle along with this over extended M formation with the second leg higher than the previous high, this is a textbook manipulation pattern which induces buyers into the market, looking for a bounce and retest of previous support now resistance before a correction to the next level of demand occurs. Finally looking at NASDAQ we can see price already had a sharp fall along with the crypto market yesterday but once again it looks like a distribution happening here at ATH prices bulls are clearly loosing strength, although now we are testing a strong demand zone i am expecting a bounce here and another potential lower high to form before possibly seeing the continuation to the downside and the break below this last support.
This could mean it has a nock on effect on the crypto market, i do expect a strong bounce from oversold conditions over the next few days but we do have to be cautious here of the possibility we go lower than current prices due to macro economic events.
This could mean it has a nock on effect on the crypto market, i do expect a strong bounce from oversold conditions over the next few days but we do have to be cautious here of the possibility we go lower than current prices due to macro economic events.
