BTC has reached oversold levels on the 1D, RSI making its way up. BTC looks to have formed a diamond bottom, this can break and just be continuation of falling wedge. BTC liquidations tomorrow. ALTS are on sale. Everything is oversold, or near oversold and in bullish patterns. Some alts have already broken out, others close, some still hit my target despite pullback (ILVUSDT). ADA has found a strong support that seems to keep the buying going. This has created a descending triangle which can be a reversal pattern. FOMC meeting is behind us with news already priced into market. There should still be end of the year harvesting going on so there still might be sell pressure. Holidays are upon us, which means very low trading volume, which means price can easily be pushed. Best case scenario BTC makes its way up to 53 before the holidays, so sentiment is bullish during low vol. Medium case scenario, we go sideways, range bound throughout the holidays. Worst case scenario, we retest 42 going into the holidays.
Important dates to note:
Evergrande payments (largest payment of 2.1B due March 23, 2022).
Hey everybody! I have used this opportunity to rebalance my portfolio because I have been doing quite a bit of buying. I am at about 20% cash right now just in case. I have entered assets that I missed previously and doubling down on assets that I hold which at now at an extreme discount. This has been very generous to the alt market. You should be very happy about this, unless you just prefer buying tops I suppose. So BTC has reached oversold RSI levels on the 1D and is coming back from the bearish divergence which pushed it down. The BTC price has formed a falling wedge, however I can see it becoming a diamond bottom, either way that looks pretty good. Options liquidations are tomorrow so prepare for volatility. Almost all alts are on sale right now (except MATIC LOL). The RSI is frequently oversold and this has created a great buying and rebalancing opportunity for me. Almost all alts are showing bullish patterns (frequently falling wedges). ADA has found a lot of buying demand in blue area on the chart. This has pushed the price out of the channel and created a descending triangle (it may get stretched forward a bit). This may seem like a bad thing, but descending triangles can also be an indication of a reversal (which is what I believe will occur). However, this is up to BTC. The fact there was not much upward retracement leads me to believe there will be a push upwards soon. This demand zone and the bottoming of the 1D RSI is the first indication of that. This has been the case with a lot of altcoins and we have seen some bounces already (SOL, AVAX, etc). We will need to get past the main green trendline to be in "bullish nothing to worry about" territory again. This won't happen overnight. Thanks again everyone!
So, tell me what you think!
This is not financial advice. Do your own due diligence.
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Looks like BTC is breaking out of the falling wedge to the upside, lets see how it goes. We still have to make it through the Asia market dump-a-thon.
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You would like to see consolidation above the flipped trendline and a retest. But we will see what happens.
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ADA starting to poke out of the Descending Triangle.
On other news, IOTA and CRV are making big gains.
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I like how the derivative markets are trying to push the price down for arbitrage, but spot just buys anyways lol
CRV looks like it still has plenty of room to run further. Is your $8 price target still in play for this move or has it changed since the correction. Is there anywhere we should be taking profit on this run up to 8 or just let it go? I am trying to keep an eye on RSI and look for divergence. Which RSI time frame do you recommend paying attention to the 1hr or 4hr or both? As always thank you.
mysticalwalrus
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@tkkbemll8, People are going to be taking profit at 6.42 and 7.68 most likely. Overall I expect CRV to keep moving far beyond 8. I just wanted to be reserved when I put out the chart. If BTC didn't dump, it would have hit its target. So I would be looking at those levels to take profit personally short term. I would look at all timeframes. At least the 1D, 4H, 1H regularly.
tkkbemll8
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@imnotgoodatall, Ok thank you. I get the first target due to the last high, but how do you derive the second one? I'm still trying to understand how profit targets are figured. I get the flagpole concept and cup and handle, but when they start building on each other I get confused. Don't feel like you need to explain it all to me. It's ok. I am planning on trying to research and learn on my own as well.
mysticalwalrus
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@tkkbemll8, It is a level of resistance. Smart money buys at support and sells at resistance. Patterns create targets, and so do fibs, but when a pattern breaks, support and resistance will always be the key levels.
tkkbemll8
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@imnotgoodatall, Got it. Thanks for clarifying.
Stoneford
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Thanks for the update! Curious if we go up on low volume.
mysticalwalrus
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@Stoneford, You're welcome! An asset can go up or down on low volume depending on the sentiment. That is why I wanted to make sure BTC positions itself above its trendline at the very least before the holidays start. Preferably above 53k if it can get there. But first we have to see how this breakout holds up.