ETHUSD update: Lower high formation relative to the 300 resistance level translates to weakness ahead. Even with the recent attempt toward a more bullish effort, the overall structure remains bearish. If Bitcoin continues to 6K, it will be interesting to see how this market behaves in relation.
Like I recently wrote, we are all trading one big Bitcoin. The correlation remains high no matter what alt you are in. Until this space proves other wise, we use Bitcoin as the general sentiment gauge. Sort of like how we use the S&P for the stock market.
From a technical stand point, as long as the bearish trend lines stay intact, it is reasonable to anticipate weak price action. A close below 200 can lead to a retest of the 160 lows.
The question we would like to see the market answer is: what happens upon a retest of the low? If Bitcoin holds above 5700, this market is more likely to produce a failed low. That is where an attractive but aggressive long setup can materialize.
Although we have been on the sidelines for weeks , we would be open to the possibility of a swing trade long IF our strict criteria is met. This would be one of the few exceptions we would make for a weak market, but it really is a play on Bitcoin strength.
Keep in mind, a decisive close below the 160 level negates any bullish exceptions. We have no problem stepping aside. It has saved us a lot of capital over the recent month and a half.
In summary, Bitcoin leads and the alts follow. Bitcoin turns red, the whole space turns red. This is a general observation, since there are occasional exceptions like XRP (pure herd mentality). I know people hate to wait, but waiting saves tons of money. There is nothing to miss in these markets, especially while there is a ton of opportunity elsewhere like in stocks.
Learning to wait is a skill that is easy to understand, but hard to put into practice. Which goes to show, what makes this game most difficult is not the intellectual or technical part, it's the emotional part. Everyone has the ability to wait, but most can't do it. Why? The answer is not on a chart.
Like I recently wrote, we are all trading one big Bitcoin. The correlation remains high no matter what alt you are in. Until this space proves other wise, we use Bitcoin as the general sentiment gauge. Sort of like how we use the S&P for the stock market.
From a technical stand point, as long as the bearish trend lines stay intact, it is reasonable to anticipate weak price action. A close below 200 can lead to a retest of the 160 lows.
The question we would like to see the market answer is: what happens upon a retest of the low? If Bitcoin holds above 5700, this market is more likely to produce a failed low. That is where an attractive but aggressive long setup can materialize.
Although we have been on the sidelines for weeks , we would be open to the possibility of a swing trade long IF our strict criteria is met. This would be one of the few exceptions we would make for a weak market, but it really is a play on Bitcoin strength.
Keep in mind, a decisive close below the 160 level negates any bullish exceptions. We have no problem stepping aside. It has saved us a lot of capital over the recent month and a half.
In summary, Bitcoin leads and the alts follow. Bitcoin turns red, the whole space turns red. This is a general observation, since there are occasional exceptions like XRP (pure herd mentality). I know people hate to wait, but waiting saves tons of money. There is nothing to miss in these markets, especially while there is a ton of opportunity elsewhere like in stocks.
Learning to wait is a skill that is easy to understand, but hard to put into practice. Which goes to show, what makes this game most difficult is not the intellectual or technical part, it's the emotional part. Everyone has the ability to wait, but most can't do it. Why? The answer is not on a chart.
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Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Trade Mexc: bit.ly/usmexc
