I'm Calling the Bottom for Cryptos

Hello viewers. Welcome to the Fast Profits Daily. Myself Brijesh Bhatia.

Crypto is the talk of the town as we have seen the market getting crashed. If you look at the total marketcap of crypto, it hit an all-time high of over three trillion, and during this fall it went below one 1 trillion hitting around US$ 762 bn mark. A wealth destruction of over US$ 2.5 tn.

If you look at the momentum, it's been bearish for most of the time into the June. But as July has been approaching, the markets are stabilising and again the marketcap of total crypto, I would say has again reclaimed the US$ 1 tn mark.

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Should you invest now? Or is it the right time to mark the bottom for the cryptos? I believe yes. For at least the short term, I believe that the cryptos are bottoming out, though I am not looking at the small cryptos where the volatility is 30-40%. I'm just looking at the total crypto basket and bitcoin over here because bitcoin is the father of the cryptos and if you look at the total weightage in the cryptos, bitcoin is the largest one.

 

So let's look at the first chart over here. This is the total crypto valuation. And if you look at this chart over here, right from the 2015-2016 lows, if look at the bottom rising trendline, the orange line, it is still holding the structure as bullish because the trendline bridge is not there.

If you look at the 2017 highs, the December 2017 highs, which was somewhere around US$ 700 bn, this time it has taken support around the similar structure over here and is showing a sign of reversal.

Now what has caught my eye? Why am I calling the bottom? If you look at the last 3-4 trading sessions, it consolidated right at the bottom support. And if you look at this week, the structure is again trending positive. It is breaking the one month high, which is the four weeks high.

We generally look at the four weeks high being taken out, which is the monthly high being taken out on the structure, and when the structured tends to be bullish, it marks a major bottom over here.

So I will be the support line the horizontal trendline, a rising trendline, the confluence of supports, playing at around US$ 700 bn, it is playing a key support area for the crypto basket.

Again, as I said, I am not looking for a smaller ticket cryptos. I'm just looking at the total marketcap and bitcoin over here.

 

So if I look at the second chart over here, this is the again bitcoin as I said, bitcoin being the larger market share on the crypto basket and the oldest coin.

Look at the structure. Again December 2017 highs is being taken as the support over here and look at a similar structure. 3-4 weeks of consolidation. This week the market have been gaining again, reclaiming around US$ 23,000 mark in to the momentum.

If you look at the Fibonacci ratio, it has taken right at 78.6 Fibonacci level of the lows to highs. So I believe yes, the total market of crypto plus the bitcoin is making the huge bottoming structure and the momentum seems to be very, very strong.

 

If I look at the top down approach and move on to the daily chart over here, look at the basing structure.

We are looking at the 3 bottoms over here, and all the bottoms are forming the higher lows, which is very, very important when we look at the reversal structure.

Plus look at the highs as well. They are forming the higher highs, indicating this trend is very bullish and marking the short term bottom over here.

The view would negate once it breaches the recent, high of probably the US$ 18,000 mark into the bitcoin. Then the view might change. But till 17,500-18,000 are held, I believe slow and steady, the crypto could see a revival.

Now I'm not expecting that there could be a 40-50% jump into the basket, but yes, slow and steady in bitcoin and total marketcap could see a revival to the bullish side.

I believe if you are an investor on the crypto basket, definitely look for the bitcoin. Even ethereum is slow and steady forming the basing structure at around the US$ 1,300-1,400 mark and is trending at around US$ 1,500 mark now. So 1,150-1,200 will be a key trend change level. Till the trend doesn't break those levels, I think things are changing for the crypto basket.

I think it is time for calling a short term bottom into the crypt of baskets. So definitely as crypto investors, you should look for at least bitcoin. I'm not looking at the other smaller coins and even would not suggest to look for those coins. Look at the bitcoin. Look at the ethereum. They are indicating a good bottoming structure and total marketcap as I discussed, it seems that the bottom is in place.

Signing off Brijesh Bhatia.