After breaking out of a descending triangle to the downside, around 14 November, it is reasonable to suspect that history will once again repeat itself. This cryptocurrency's price is forming something between a descending wedge and a descending triangle. With that being said, it is less rational to expect a break of prices to the upside, since there has been a large sell-off since forever! And you know what they say on Wall Street: "never try to catch a falling knife". Therefore, i wouldn't advise entering any long positions on this asset. I would rather wait for an exhaustion of the buying activity and enter into a short position. As usual, price action is key. I would also feel safe entering short once the prices bounces of the top of the descending triangle's resistance and the when RSI reflects overbought conditions.
have you seen the longs on BTC in the past day? Going parabolic. Do they know something you (we) don't? Just throwing that out there.
munyaelliott
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@jeremy.jacques79, Of course institutional firms and those affiliated with them possess more knowledge than us. I rather trade breakouts. With breakouts, instead of trying to predict whether the price is going up or down, you wait for the market to show you the intended direction. These forecasts are just ideas and they do not mean i know too much or too little. They are purely out of a technical analysts' textbook application. This is what the textbook says, but what the textbook says and what happens in real life are two different things. Always wait for the price to show you its hand.