Looking at the three-day chart of crypto total market cap, that metric is again pressing against a major trendline (Figure 1). In technical analysis, they say every good trend line has three points. That could imply a sharp drop in crypto market cap is coming. If the recent alt pump is in the ninth inning, that could add to the power of any down move.
For Bitcoin (BTC), one “good” scenario might be an orderly decline to $3,500 for Bitcoin (BTC) . This would be in line with our version of the Wyckoff model for a bottom (Figure 2). We used Bitcoin (BTC) on BitMEX (XBTUSD).
We’ll cover the worst case scenario in our upcoming Crypto.IQ newsletter.