Let's look at the and try to describe possible market movements in the nearest future.
I would like to talk about 1700$ and 2400$ as the main levels where the price action will be very important for traders. We should plan our trades consider these levels as they also are the borders of a possible .
I think, there are 3 possible models which the market will be able to offer us.
1. The price bounced from 1700$, broke MAs and the local downtrend line. It showed the strength of the bulls and their wish to push the price upward. The previous swing high is 240$ and if the bulls can break it, we should be ready to see an upward movement toward 2900$-3000$. Breakout signals from the daily and hourly TF can be used for buying with the main target at the resistance.
I don't like this option too much. The market has made a good upward movement already. We won't be able to get good entry points if we follow the breakout signals above 2400$. I would prefer to wait for a pullback and buy using reversal setups.
2. In this model, the price bounces from 2400$ and moves back to MAs and 2000$ support. Reversal setups can be used for buying as we will get a new higher-low. It will be a good signal which also will be able to give us a good entry point. I think this option will be good for swing and long-term traders, who missed signals from 1700$. There is only one thing that can break this perfect plan - the price can break 2400$ without the pullback and reach 2900$ resistance. If so, we should be ready to miss this upward movement from 1700$ and wait for new trade opportunities with good entry points and a workable risk/reward ratio.
3. But what if the price bounces from 2400$ and moves back to 1700$? It will be an amazing buying opportunity from 1700$ local bottom. The market will give another amazing opportunity to buy the most strong coin at an amazing price. The question is only about the strength of bears. Will they be able to reverse the price from 2400$ and push it toward 1700$. To be honest, in the current market conditions I don't think it is possible. For such a downward movement we will need strong fundamental news against the whole crypto market. If we get such news, well 1700$ will be a reachable target, and probably even 1350$ - 1000$ support will act as the main bottom. The market will be able to give us the best trade opportunities from this bottom. I don't think this option will be executed, but we have to take it into consideration in any way.
So, I think it makes sense to use these 3 models and plan future trades accordingly. Of course, I don't provide you financial advice. I just share with you my thoughts and nothing more. Do your own research! Plan your own trades by yourself. It will be great if you share your thoughts about this coin and how you are going to trade it in the comments below this post. We will discuss the most interesting ideas.
Thanks for your attention! I will be grateful if you support my work by smashing the LIKE button and feedback. Have good trades!
What do you make of that RSI? It is starting to get overheated - or do you think it has room to run?
Great analysis overall, I am worried that we might be repeating 2018 again, ETH looks so close to how BTC did fractal wise, during that time.