Crypto Market going into a Downtrend or Re-testing Resistance?
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What's up guys! We are experiencing a huge shake up in the Crypto Market atm. Specially with the BTC sell off, alts really took a hit! Some even regressed so much that all the gains startig this year were lost at this point.
The question is, do you have a plan of action? Well, I do!! Let me share two possible scenarios.
1) On the Weekly and Monthly timeframes we are at a resistance area where you are expected to take profits and sell accordingly to secure gains, unless you're a breakout trader, then that's another story. Having said this, on the Daily chart it is re-testing a support zone that could possibly turn into resistance, and if that happens, then we'll go short. Once it finishes the re-test and it's successful, we can aim to short at the next demand zone. If you go to weekly TF you'll see it even clearer. The zone is marked with the BUY icon over the green rectangle. Once you get to the zone, it's an awesome area to BUY!
2) Price could totally bounce from here and get back into the range. We'll need to wait for the breakout of the downward trendline along with volume. We can't aim too high here since we have a roof kind of close. I marked here with the Sell icon the zone that I believe is going to drive selling pressure or some kind of heavy reaction. So we can take profits there in the short term. Monitor closely these key levels, as they have extra added confluences from the past.
I hope you found this article helpful. Don't forget to boost and follow 👽
Tip of the Day: Manage your risks, set targets in advance, and read the news!
As always, keep it Shiny ⚛️
Kina, The Girly Trader
The question is, do you have a plan of action? Well, I do!! Let me share two possible scenarios.
1) On the Weekly and Monthly timeframes we are at a resistance area where you are expected to take profits and sell accordingly to secure gains, unless you're a breakout trader, then that's another story. Having said this, on the Daily chart it is re-testing a support zone that could possibly turn into resistance, and if that happens, then we'll go short. Once it finishes the re-test and it's successful, we can aim to short at the next demand zone. If you go to weekly TF you'll see it even clearer. The zone is marked with the BUY icon over the green rectangle. Once you get to the zone, it's an awesome area to BUY!
2) Price could totally bounce from here and get back into the range. We'll need to wait for the breakout of the downward trendline along with volume. We can't aim too high here since we have a roof kind of close. I marked here with the Sell icon the zone that I believe is going to drive selling pressure or some kind of heavy reaction. So we can take profits there in the short term. Monitor closely these key levels, as they have extra added confluences from the past.
I hope you found this article helpful. Don't forget to boost and follow 👽
Tip of the Day: Manage your risks, set targets in advance, and read the news!
As always, keep it Shiny ⚛️
Kina, The Girly Trader
Note
Looks like Crypto Total Market Cap could go for the 2nd scenario which I've shared before. The re-test to probable support turned into resistance is not holding up because price has pierced this level and it could potentially close on 2.2 T and if it does, that would confirm the 2nd scenario. We would take advantage and Take profits at around 2.45 - 2.5 T mark following previous market flow. We still need to wait for a solid close at 2.2 to confirm this.Note
We've got the solid close at 2.2 T, and it started raising above! Stay alert and take profits accordingly at 2.45–2.5 T, unless you think the alts bullrun begins now lol.2.7 T is a nice target if BTC starts consolidating at 72k, so that's another possibility that could play out. Beware; bears and bad news are always lurking around the corner. Be smart and trade safely.
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