As the larger markets show signs of life following a harsh corrective move, crypto strategist and trader Scott Melker says he’s witnessing significant positive reversal indications on four large-cap altcoins.
Melker tells his 57,500 YouTube subscribers in a new video that he’s looking at Ethereum vs Bitcoin (ETH/BTC) and believes the pair is starting to carve a bottom.
According to him, There has been a lot of selling on (May 19th). Following that, the volume dropped. The price continued to fall, but the volume fell. There was one more minor surge on May 23rd, but it was purchased. He terms it as, ‘Blow-off top,’ with a candle that was reversed (May 23rd hammer). It’s similar to a blow-off bottom. Last-ditch effort on lower volume, which lowers the price and reverses the trend.
The trader is interested in the Ethereum scaling solution Polygon (MATIC), which he claims is experiencing high demand following its recent decline.
He cites a huge bullish candle (May 24th). That will almost definitely be the greatest day volume on MATIC we’ve seen this year. After [a] reversal candle and engulfing practically all of these candles, this is an incredibly bullish volume.”
Litecoin is another coin on Melker’s list (LTC). On the lower time frames, Litecoin is beginning to print a technical reversal pattern, according to the trader.
This hasn’t bounced quite as much as the others so far, but it’s still encouraging. Above $146, it looks pretty good. There’s a [inverse] head and shoulders vibe going on here. Above that level, Litecoin appears to be in good shape.
The last cryptocurrency on the crypto analyst’s radar is Chainlink, a decentralised oracle network that is seeing a big push back from bulls, according to him.
“On the daily, this is a giant candle (May 23rd). This is a bullish reversal, similar to what you see on MATIC. Bulls push price back up after a long wick, creating a hammer… Then there was a bullish candle next to it that was going up.”