BTC: BUY or DIE
The new week of August started with a nice drop on S&P500 right after liquidity(1) was taken. Would be nice to see retest of previous consolidation at around 3800-3900, before some significant move up.
NAS100 and US300 are following.
S&P500 dropped 4.5% from August 16 level. At the same time correlation between US Stocks and Crypto was changing: the leader now is ETH, who follows more accurately rather than BTC.
Considering that closing the Gap at ETH1! at ~ 1287-1333 usd doesn't look unreal, which is just 18% away. Another Gap was formed previous weekend ~ 1629-1679 usd. Normally within a week price closing one Gap.
TOTAL Marketcap after Weekly candle closed doesn't give much hope. There is a nice Engulfing pattern on candles. Stoch indicator is in Overbought area and RSI is bouncing down from descending trend line.
On a daily chart TOTAL is below a trendline, most likely pullback up may happen before the continuation of downside movement. Support/resistance areas are working perfectly at indexes and as you see it respects the support area(green rectangle).
At the same time many might hear that most accurate indicator - Hash Ribbons just printed a Buy signal on a Daily chart. On a history the max pullback down from that indicator was ~8%, which is around 19000 usd.
On a weekly chart there was no confirmation yet.
The question is how big possibility that BTC will rise?
That's a weekly chart of Bitcoin dominance and it's right near the lowest area of long-lasting range(since 10 May 2021). There is 2 scenarios what may happen if it reverses now and start to go higher:
1) BTC will pull liquidity from Alts(especially from ETH) and goes up, some might suffer but most will follow with the delay