BTC | Another bloody monday | May 23rd 2022

I will include this chart in connection with the decline we have seen this month. We see the price moving sideways & compression taking place. This means that we are printing a pattern. We call this pattern a 'Descending Wedge' which is a bearish pattern that has a good chance of breaking out downwards.

However, there is also some bullish news in the market regarding USDT. This would again have shown that there is sufficient paper vs. the crypto unit is so that no liquidity problems arise. This could potentially provide a relief rally. But.. we look further.

Dominance has made quite a run to the 45% level these days. As for the pattern, we are looking at a kind of oblique channel, which doesn't really fit into the 'standard' patterns. That's why I won't mention any. What we do see 'live' is that dominance has faked out and has come back into his channel, which now seems to want to break out downwards. That is bullish for the ALT market as we want to be as low as possible in % on this chart.

I therefore like to look at the 43.22% level where 'support' lies for this chart. Since you can't trade these, you can't really call it a support. give it a name ;)

The chart we've been seen for a few weeks now. The dollar chart has finally stopped rising indefinitely. This is positive for Bitcoin. If the DXY is on the rise, BTC will fall in value & vise-versa. We seem to be losing the 102$ level at the moment, 101$ is the next relatively small level where support can be found, then it can drop further to 100.4$ where there is already more support.

I briefly touch this chart to indicate that a CME gap has formed over the past few hours (night). This seems to be currently being filled.

The top for this CME Gap is at 30010 and the bottom at around 28975. This could lead to a dip for the ALTs. With the exception of some alts (Anchor Protocol for example which has quietly risen 400% in the last 24 hours).

A update on this chart, CME Gap seems to be filled now. Pierced through. Will we head for the next CME Gap between 26505 and 24660 as bottom? (lets hope not).

Yesterday I already started drawing the trend lines to see where a bounce takes place. Once we break out of this big flag, we may start to see some volatility (read: big price action). However, the pattern we are in is 'bearish' as a 'bearish pennant' usually breaks out downwards. We are currently seeing a large red candle on BTC live on the chart.

As for the CME gap, we could still drop to 29290 before we may find a 'bottom' for support. This is also where a support level starts.

In this chart we take a closer look at the strength of ETH vs. BTC. Looking at the bigger picture, we have hit a lower high, sadly broke a bullish pattern downwards. With the addition of a bearish pennant. These usually also break out downwards. By the way, don't let this chart fool you, it seems to want to break out upwards. This is only as far as he has actually done that & a candle open and closed has been printed. Just through it, is not a "breakout" of the pattern. This is also a pattern where I once forced a trade, then broke out a candle straight down, bearish :)

Finally, I would like to zoom out a bit so that we have a clear picture of this analysis. Bitcoin is currently experiencing a dip in its range. We see these dips more often these weeks.. Basicly this should no longer evoke crazy emotions, because we are used to it now.

Levels of support to watch for any DCA:

And know that we are still in a bearish pattern after the heavy drop. The channel is especially scary right now as we don't want to drop any deeper.

Another picture of the channel in which we have been moving mostly sideways for a few weeks now.

Is there cause for panic?

Finally, I'll add this one. The long positions continue to increase to date. If we were to get a long squeeze… that would not be a pleasant sight for Bitcoin. Let's hope it doesn't happen. Also take this chart with a grain of salt, it concerns 1 exchange and not all exchanges.

But keep it in mind that this could well cause an issue if we sink too far & panic in the market hits even deeper.