The crypto world ended December on a very bearish note. Except $MATIC, every other coin in the sample closed the month with a bearish candle formation. Let’s have a closer look starting with the worst.
$ADA formed a 5-month Tower Top. In addition, on the quarterly (not shown) it made a bearish Engulfing and a monstrous Spinning Top on the semi-annual frames. It’s difficult to imagine a more deadly combination of long term candles. I would not be surprised if $ADA goes to near zero in the next several months.
Odds: extreme bearish
$DOGE and $XRP confirmed the Dark Cloud Cover candle combos on the monthly frames. The odds are bearish and a move down in January is almost guaranteed.
$DOT and $Theta confirmed the Spinning Tops and are ready to move lower.
By the way, $Theta seemed to breakdown a triangle structure with a possible target of $0.20 in the upcoming months.
$Solana made a bearish Engulfing of a Spinning Top. The chances of a continued move lower are very high.
$BTC exacerbated the Dark Cloud Cover and opened a path to complete a Tower Top in January. The odds are bearish, but not strongly. January will be critical.
$MATIC is the only one with a strong bullish monthly candle. This week, however, it closes with a Dark Cloud Cover and at this point, based on the candles of smaller frames, I am not convinced that it will continue higher from here.
The overall picture is very bearish and its bearishness has increased across the board since the end of November.
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