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It’s not an exact science but based on what I have learned from its equivalent on the equities side this suggests upside strength after effectively coiling up in a sideways range for months on end.ĮTH began to lead BTC last week and is now moving so rapidly that I had to renew the snapshots twice during the drafting of this post. Note that there was a marked detachment from the smoothed control line but it barely caused a downside wiggle. Implied volatility for BTC as expressed by our brand spanking new IVTS (shown inverted to align with the price action) has been very interesting. The odds of a b-line advance to that final hurdle are fairly low IMO as a retest of the BTC 45,000 threshold seems to be more plausible once early profit taking has materialized. The next price frontier now awaits near BTC 52,000. I have repeatedly made the point that drawn out corrective phases may be emotionally taxing but over the long term serve as important support zones should an exogenous event trigger a sudden downside response. Moving forward: With BTC 45,000 now behind us the preceding sideways range should now be considered an important support zone. With the momentum effect once again active across the entire crypto market the overarching sentiment among crypto investors and traders has now flipped from FUD back to FOMO. As a result over $100 Million worth of over leveraged short positions where effectively taken to the woodshed in one single session. After three months of having to endure another frustrating prison term in crypto purgatory two important inflection points – both in BTC and ETH – were suddenly breached on Sunday night.