Blocksmith Says: A Meaningful Reversal is Underway

10 June 2022

Yesterday we looked at the decoupling of Ethereum and the S&P500 Index. The SPX is now catching down and recoupling as crypto has largely remained unscathed in this equities flash crash across Europe, Japan and the US. 

A couple of interesting technical points in the chart: 

1. A failed break of key support / resistance.  Price looked to be consolidating ahead of an upside break which was being attempted and then dramatically failed.  Failed breaks are a big indication that a meaningful reversal is underway. 

2. Head and shoulders top in RSI – momentum leads price.

Christopher Grafton
Christopher Grafton

Chris has been working in the markets for over 15 years variously as a broker, analyst and researcher. He is the author of a well-known book on Hurst cycles analysis, and runs his own market analysis software platform on Bloomberg. He’s also a keen student of both the cello and Brazilian Jiujitsu.

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