Like a strong cup of highly caffeinated coffee or the sound of a rooster crowing at the crack of dawn, few things have the potential to be attractive.
When it comes to altcoins, cryptocurrency investors can receive a wake-up call that they will not be able to ignore. Keep reading to learn all about the morning star pattern that recently appeared on the weekly chart of several cryptocurrencies.
Why Crypto could be in for a good ‘morning’
Earlier in June, the US Securities and Exchange Commission launched an attack on enforcement actions against Binance and Coinbase. Many of the best altcoins have been named as securities in the issue. This list explicitly mentioned MATIC, SOL, and a handful of others.
The result was a deep sell-off, worsened sharply as US-based institutions began offloading altcoin holdings en masse without concern for the market impact.
However, after the news that BlackRock and several other institutions were placing orders for Bitcoin ETFs, the market saw a strong rebound.
The recovery has been particularly strong in digital currencies, which have been oversold amid ongoing regulatory uncertainty. The sharp turnaround was also enough to form a morning star pattern in several major cryptocurrencies
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Top altcoins have formed a morning star pattern | ETHUSD on TradingView.com
Morning Star Pattern: A wake-up call for Altcoins
A morning star pattern has formed on blue chip altcoins such as Ethereum, Litecoin, Chainlink, and Fetch.ai. This type of candlestick pattern is a potential bullish reversal pattern with strong implications.
The pattern strengthened with the weekly close on Sunday, but for full confirmation further upside must follow. This uptrend is expected to materialize in 3-5 candlesticks, or in this case, weeks.
With several of these fundamentally sound, regulator-friendly currencies regaining most of what they lost in June, the follow-up could spark a more significant upside across the brutalized altcoin space.
This graph originally appeared in CoinChartist Version 9 (VIP). Gets discount 10 Subscribe for one year with this link: https://coinchartist.substack.com/NEWSBTC
