So overall, looking at $BTC and $ETH charts, I still remain bullish. BTC can break this level here and go to 55/56K support, and still remain inside the bull flag. If it remains inside the Bull flag then it can still rally after all this pull back. ETH is bouncing off the 3230 area which is a major rising trend line (in red) on my chart. So I think both BTC and ETH are still in Bullish territory, both are still only down 20% from the top. The situation for crypto in the last 2 months have surprised me and many in the markets, who wouldâve thought Trump switched to be a big crypto supporter now, and Biden is also forced to pivot; so that ETH ETF is approved and SEC attack on ETH is now finished as well and ETH is officially NOT a security anymore. All of these were huge surprises and quite positive for the markets. The sentiment and market can turn quite quickly and squeeze the shorts, and there are a lot of shorts as we see in the chart below. As price was falling earlier today, Open Interest was increasing, meaning shorts are being built up as prices were falling. So exchanges would want to short squeeze with a sharp bounce I would think.Also bear in mind on Thursday, there is the debate between Trump and Biden, and it is possible one or both of them can have a debate about their crypto policies. And if they say something positive that we have not heard before, then prices can bounce hard to squeeze the shorts. Overall, I understand the Fed is still holding rates high, trying to crash China/Japan/EU, Iâm the only one who was calling for this. But I also understand that the Fed might be running out of time as well if it keeps holding like this, and weakness are starting to show up in some areas in US economy. So in a month or two we could have the market pricing in firm rate cuts⊠I donât think this is a bearish situation for BTC or ETH, especially since sentiment is bearish then I think we could at least get a big bounce.
