Before I get into the update on the custom fear and greed index I want to chat for a second about some modifications that will be coming in the Sunday Synopsis. I’ll be making some changes to the weekly structure charts.
In an effort to make the drawing of the market structure more replicable for each individual I’ll be drawing out the pivot points based on Fib Retracements. I’ll get more into it in a post tomorrow but I just wanted to give you a heads up. We’ll be defining market structure at these levels in the Fib Retracement indicator.
The week's custom sentiment indicator, the Smurf Sentiment Index, is below. We are still residing in a state of extreme fear albeit in a cyclical uptrend into the first weeks of June. The RSI is setting up in an ideal condition for a potential increase in greed (decrease in fear) if the RSI breaks above the top band and the midline. The daily price cycles on BTC also show a similar bullish cycle but given the price action, I believe we are experiencing simply a pause in the downward trend. Increases in price action may occur but I’m not anticipating a mid-term trend flip to bullishness at the moment given the technicals.
For a few extra thoughts, BTC & ETH are both nearing the edge of possibilities of more major downside continuation. I’m not going to post all the charts explanations here in this tiny post but for a basic snapshot, looking specifically at traded volume at price levels on different timeframes, weekly closing prices below the thick white dotted lines don’t have much support until the lower levels. IMO the lower levels are where we could see wicks from a large-scale capitulation (which hasn’t happened yet btw). The lower side projections of the total crypto market cap during this event from my analysis would be around 700B.
See you tomorrow with a deeper explanation of the market structure changes you’ll be seeing on Sundays. Also, we are nearing the anniversary of my first newsletter, June 2!!!! Thanks so much for being here with me.
@theprivacysmurf
Considering how crazy things are at the moment( (yes, it’s my first bear in crypto), I think I’ll be glued to the screen until your next update! Keep up the great work!
CONGRATULATIONS…🥳🍾🎉🤯!!!
Thanks for having us,& being so patient…🙏🏽🤠😎😇