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We might be seeing a trend change for Hive/BTC
This does not come as a surprise after I pointed out last month that Hive was showing sings of a trend reversal as well. So far that has held and Hive is currently at a critical threshold that could propell price much higher to around 50-60 cents.
Last month in the last analysis for Hive/BTC, I made this chart which highlighted the 3 wave movement so prominent in the chart:
The idea back then was that price was bottoming out at the level indicated and could pull back up. The caveat or ambiguity in the chart, however, is if the third wave was truly the 3rd one or still part of the second. So far it looks as if the 3 wave downward movement actually has been completed. If so, there is room to the upside of that channel. To be exact, around 30%. This is the updated chart:
It took some weeks to establish a bottom, but the indicated support from the bottom trend line held. To me it looks like as if price is ready to tackle the upper trend line which is a rather strong resistance. We'll have to see if Hive has the momentum to break it, but we'll do that once we are at that level. I am seeing two main scenarios:
The bearish one would be going for the actual 3rd wave taking us a bit down further. The bullish one would see the price ratio tackling the upper trend line of the channel or falling wedge and continue upward to the highs seen in 2021.
I strongly favor the latter and more bullish scenario for several reasons. The chart pattern is a falling wedge which has a greater probability of breakout out to the upside; historically Hive has been strong in summer and fall; heading to the targeted levels below is a drop of around 25% which is rather large and would indicate that BTC would leave alts in general behind, yet the Bitcoin dominance chart seems to be pointing at more consolidation.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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