The 656 level is the .382 of the recent structure which is an attractive level to look for long setups. The question is, what does a long setup look like? Pin bars and other candle stick reversal patterns can serve as validation points, but what is missing here is a broader structure like a formation.
Just like the aggressive trade signal that we recently called in BTC (on S.C.), this market is showing a similar situation. support, a predetermined level (which BTC did not have at the time of the signal) and a . This is the recipe for a long, but the problem is the probability, especially in light of a BTC market that has not proven any technical stability yet.
Keep in mind, price can fluctuate up to the 714 level (.382 resistance of current swing), or even the 741 area (.618 of recent structure) only to establish a lower high. Day trading up to these levels is one thing, but swing trading carries too much risk.
In summary, at S.C., we are now waiting for the more conservative criteria to appear before entering into the next swing trade long. Stability can be expressed in the form of chart patterns and until one of our setups appear, we will not issue any new signals. As long as momentum stays , it is still within reason to expect price to push lower. How much lower? There is no way to determine that, especially with no particular structures in place. Patience is key. These markets will find stability, it is a matter of time. Instead of deciding for the market, at S.C., we will simply wait for it to provide clarity and then determine if there is an opportunity worth entering.
Questions and comments welcome.
Let's wait for 500s.
As you said altc are ruled by BTC, it seems BTC it is expected to have support between 8200-8600, and usually, after the consensus, there is a bullish trend. Anyway, we'll know it for sure next week.