The reaction was there, but very weak: possible bull-trap?


What Market Phase are we entering into has been the introductory question for our last appointments. Are we going to listen to the Bulls or the Bears? Are we going to see a Bull Market or a Bear Market?

Welcome to Surfing the Market, we are already at our 51th appointment and I hope that with these easy tech analysis we have helped you in some forms, even just to evaluate different market perspectives.

Let’s start from our usual weekly perspective


Source:Tradingview - Weekly Chart

Price reacted quite strongly by breaking out of liquid support.

The bullish movement, tested the 28400 resistance and had a retracement.

At the moment a drop could be very likely, let us see later in the analysis whether it is possible or not.

What do I expect from a daily perspective?


Source: Tradingview - Daily Chart

The purchase of MicroStrategy, had a good momentum in the market, but it might be a one-time event and therefore does not give the certainty of a real bullish market; we will see this below with the DXY chart!


Source: Tradingview - Dollar Strength Index

DXY continues to grow with good momentum: it has bought almost a point over last week, and this is contradictory to the bullish momentum.
Inflation news were not bullish and as the rate was kept constant in more or less all the world, no impulse came from there.

As I had speculated last week, the 50MA line (red) has had compression in the purple zone and price action has had bullish momentum; however, we must be very cautious because we are still quite close to the Death Cross.


Source: Tradingview - Daily Chart

Price broke the cloud (ichimoku) for a first moment and then retraced, now we are in a stalemate: price is within the cloud and continues to test resistance at 27500.
In this situation I would be very cautious to move.


Source: Tradingview - Daily Chart

And now, what from a Volume perspective?


Source: Tradingview - Daily Chart

Volumes are decreasing day by day as the uncertainty is really evident.

What to observe particularly?

Volumes are practically "insubstantial" and do not give a clear signal in either a bullish or bearish direction.
All indicators suggest being extremely cautious, which is why in the title I speak of bull-trap.

Stay tuned and be sure to follow to get noticed when my contents come out.


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None of what I write can represent a financial advice in any form. So Do your own research before taking any kind of action.

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MikeZillo
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Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here https://www.youtube.com/channel/UCvyXx6I1C__zmLAYUXNZwQQ? Telegram: @mikezillo


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