A quick look at #PancakeSwap (#CAKEUSDT, #Binance, 4HR):
Whether we see a wedge or a broadening formation, CAKE is broke up from it with a nice spike in volume.
If confirmed, it could be a good entry.
If it fails, price could go back to the $23-$22 level.
If you want to read more about PancakeSwap on CoinMarketCap, click here.
What do you think?
Still learning here, so any constructive feedback and positive vibes to improve my analysis are welcome. But if you enjoy my chart, please like, comment or follow me. :)
Thank you and Happy trading!
------------------------------------------------------ Needless to say, this is not financial advice!
Trade active
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The 15m chart shows what seems to be a confirmation, with price bouncing at $25.45:
Trade active
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TP1 reached! Woo-hoo! Let's see if CAKE flips the $27 level into support and move higher:
Trade closed: stop reached
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Stop Loss reached. Price seems to do quite well compared to the market and has recovered a bit. Let's see what happens next.
Comment
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Good recovery by CAKE, likely supported by the recent upgrade to V2. If you bought back, now you would be enjoying TP2 profits.
Trade closed: target reached
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TP3 (eventually) reached. Again, if you did buy back when the price bounced back from the latest dip, CAKE rushed through all previous TPs, reaching our TP3. At this point, I look for a re-entry between $30 and $29.50. A retrace down to $28 is also possible, but CAKE is pushing and the average volume increasing. We'll see. What I have learned is that next time, I might be more generous with my Stop Loss (*always within the amount I am willing to lose*).
Also side note, BTC 4HR chart is a nasty rising wedge. So I wouldn’t go long on basically anything at this point.
BitfulMind
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@joshfarelli, the way I drew my trend lines, BTC has already broken down the wedge.
joshfarelli
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@BitfulMind, Interesting! either way, I'd be careful.
joshfarelli
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Short
BitfulMind
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@joshfarelli, Thank you for commenting! So, would you short for a scalping opportunity down to the "confirmation" line? Or do you think it will go lower than that? If so, why? I am genuinely interested.
joshfarelli
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Order books are heavy around 27-30 almost 10M in shorts. I’m thinking since BTC is super unpredictable and looking skiddish... sharks are comfortable shorting after making some cash from 21-27 today. I think around 16 (extreme BTC correction) to 19.5 is more likely the bounce range in the upcoming days.
BitfulMind
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@joshfarelli, These are all excellent points, thank you! Now, I came across the theory that at times, sell/buy walls can be intentionally put in place to keep the price within a certain range. In this case, it would be to keep prices low enough to further buy, and then "remove" the wall to let the price go up. Could this be one of those scenario?
joshfarelli
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@BitfulMind, This is very plausible I was actually thinking about closing my short position and waiting to see if I can get a better one further up. I strongly believe that BTC has one more push in it, giving CAKE bulls a viable opportunity to liquidate most shorts before tanking.