What a week for Crypto! Honestly no matter how hard you tried, you couldn't escape the news regarding COVID-19. Crypto was not immune as we can clearly see based off the prices across the market. We can certainly kiss the idea of Crypto being a safe haven goodbye for now because whales were pulling their money out faster than you can say WTF. It broke through many logical support lines and even the 200 MA on the Daily. It wicked to the double digits before people got some sense and raised it to its current validation of ~$121. Hopefully you were HODLING through all the madness because it definitely wasn't warranted.
Right now the big players see our market as speculation and without circuit breakers, the pressures of selling become extreme. I would advise smart money to wait until we get more clarity in the bigger assets markets. Whether we like to admit it or not, that selloff on wall street affected Crypto. In the coming days, we will be getting more news coverage about the slowdown of the economy. Many of the forecasts I had regarding ETH have been delayed because of this unforeseen event. I won't be getting into ETH or Crypto for awhile until the markets and my chart re-calibrate. I am still LONG HODL and if it dips into the double digits again, especially around the 80s, Ill be looking to swipe a bag or two.
Now, if I were to get in, I'd look into the following factors from a TECHNICAL point of view. Reminder that TECHNICAL ANALYSIS goes out the window when faced with strong fundamentals (Assets across world sell off, hacks etc...)
*Moving Averages
*Patterns
*Volume
*RSI
Moving Averages = the 200 DAILY MA has been broken (Blue Line) without any fight what so ever. This can just as easily play the other way around, so as we start climbing toward the 200 MA, and say for example the 55 MA is providing it support, I would bet the support would be strong enough to break past that 200 MA.
Patterns = The earliest pattern I see potentially forming is a morning star -ish :
Do I like the pattern? Well ... for short/medium trades sure IF the next two are looking good :
VOLUME= Yes, we had major volume leading to the dip and even more the following day. Right now, we aren't seeing the same type of volume even though the candle currently is red. This is a good sign that the selling has calm down (*Yes, this could also mean fundamentally people are waiting for more news before investing but I am talking technical here*)
RSI = Undersold, what else can I say here. However I wouldn't look to deeply into this one just yet because the previous candles really did a number on this indicator. I would not be using this indicator as my only tool to get in/out.
The final verdict?
Short/Medium (a few days / weeks) we hit $150~ region. We complete the black pattern I drew on the chart. After which we would be testing very important resistances to continue our trip north. But something is telling me this is a bull trap and for that reason today I wouldn't want to LONG. If you got money you can split your orders; Have 1 around the double digits ($80s) and another around this current price to try and take advantage of this "calmness"
Risk Management will play a big role here, so cover your a**.
Right now the big players see our market as speculation and without circuit breakers, the pressures of selling become extreme. I would advise smart money to wait until we get more clarity in the bigger assets markets. Whether we like to admit it or not, that selloff on wall street affected Crypto. In the coming days, we will be getting more news coverage about the slowdown of the economy. Many of the forecasts I had regarding ETH have been delayed because of this unforeseen event. I won't be getting into ETH or Crypto for awhile until the markets and my chart re-calibrate. I am still LONG HODL and if it dips into the double digits again, especially around the 80s, Ill be looking to swipe a bag or two.
Now, if I were to get in, I'd look into the following factors from a TECHNICAL point of view. Reminder that TECHNICAL ANALYSIS goes out the window when faced with strong fundamentals (Assets across world sell off, hacks etc...)
*Moving Averages
*Patterns
*Volume
*RSI
Moving Averages = the 200 DAILY MA has been broken (Blue Line) without any fight what so ever. This can just as easily play the other way around, so as we start climbing toward the 200 MA, and say for example the 55 MA is providing it support, I would bet the support would be strong enough to break past that 200 MA.
Patterns = The earliest pattern I see potentially forming is a morning star -ish :
Do I like the pattern? Well ... for short/medium trades sure IF the next two are looking good :
VOLUME= Yes, we had major volume leading to the dip and even more the following day. Right now, we aren't seeing the same type of volume even though the candle currently is red. This is a good sign that the selling has calm down (*Yes, this could also mean fundamentally people are waiting for more news before investing but I am talking technical here*)
RSI = Undersold, what else can I say here. However I wouldn't look to deeply into this one just yet because the previous candles really did a number on this indicator. I would not be using this indicator as my only tool to get in/out.
The final verdict?
Short/Medium (a few days / weeks) we hit $150~ region. We complete the black pattern I drew on the chart. After which we would be testing very important resistances to continue our trip north. But something is telling me this is a bull trap and for that reason today I wouldn't want to LONG. If you got money you can split your orders; Have 1 around the double digits ($80s) and another around this current price to try and take advantage of this "calmness"
Risk Management will play a big role here, so cover your a**.