We are starting to see a break below the critical $3600 support level. The bulls are likely in for another set back.

The low MAY have been reached on December 15th at ~$3100. Since then we have seen a bounce above a key short term level at $3600. We must see if price builds above $3600 for a push above $4600 or if price breaks down back below $3600. A push above $4600 would be bullish. A breakdown would likely lead to new lows. – Weekly Update (1.8.19)

As the chart technicals are breaking down, we are also seeing fundamentally positive catalysts delayed.

Bakkt is a game changer for the industry and represents a potential demand shock. Bakkt may well be the event that turns the market for the bulls. Ironically despite Bitcoin being viewed by many in the mainstream as “anti government”, the crypto market is now stuck waiting for the US government to end the shutdown… paving the way for regulatory approval to launch Bakkt. Funny how the story is playing out.

The scheduled Ethereum upgrade has also been delayed. The upgrade would have lowered ETH supply, a positive for price all other things equal. This is a set back for the scaling solutions that the future of the network depends on.

As bulls wait for the “cavalry to arrive” in the case of Bakkt, short sellers are far from overextended. This means that they will have plenty of ammunition to drive crypto market prices lower.

Short term traders are likely concerned about another thrust lower. Long term investors are likely happy to continue accumulating at lower prices.

Top 3 Assets By Market Cap

Bitcoin (BTC)

Ethereum (ETH)

XRP (XRP)