GM: How A Morning Star Pattern Could Awaken Altcoins
Like a strong cup of highly-caffeinated coffee or the sound of a rooster crowing at the crack of dawn, some things have the potential to be a real eye-opener.
When it comes to altcoins, crypto investors could get a wake up alarm they won’t be able to ignore. Keep reading to learn all about the morning star pattern that recently appeared on the weekly chart of several blue chip cryptocurrencies.
Why Crypto Could Be In For A Good “Morning”
Earlier in June, the United States SEC launched an onslaught of enforcement action against Binance and Coinbase. Many top altcoins were named as securities in the case. This list explicitly mentioned MATIC, SOL, and a handful of others.
The result was a deep selloff, severely worsened as US-based institutions began unloading altcoin holdings en masse without care of market impact.
However, following the news that BlackRock and several other institutions were filing for Bitcoin ETFs, the market staged a strong recovery.
The rebound was especially powerful in altcoins, which have been extremely oversold in the midst of the ongoing regulatory uncertainty. The sharp turnaround was also enough to form a morning star pattern in many top cryptocurrencies
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The Morning Star Pattern: A Wake Up Call For Altcoins
A morning star pattern has formed on blue chip altcoins like Ethereum, Litecoin, Chainlink, and Fetch.ai. This type of Japanese candlestick pattern is a potential bullish reversal pattern with powerful implications.
The pattern solidified with Sunday night’s weekly close, but to fully confirm must be followed by further upside. This upside is expected to materialized within 3-5 candlesticks, or in this case, weeks.
With many of these more fundamentally-sound and regulator-friendly coins recovering most of what they lost in June, follow through could spark a more significant bullish trend across the brutalized altcoin space.
This chart originally appeared in Issue #9 of CoinChartist (VIP). Get 10% off a year subscription with this link: https://coinchartist.substack.com/NEWSBTC
Filed under: Bitcoin - @ June 26, 2023 11:38 pm