Hi everyone, this is my first published attempt at TA. So all the usual disclaimers should be implied! Any and all advice or suggestions is welcomed and encouraged, thanks in advance!
Here we see HOT/BTC on the daily chart with a very clearly defined falling wedge with 3 touches on each wall, suggesting a strong correlation with the pattern. RSI has been on a steady decline throughout this move, as has the trading volume, which at the moment of writing this analysis is at one of its lowest levels for the year.
So now we see ourselves approaching the apex of the wedge with the 50EMA (orange) closing in. A breakout will need to occur soon or the wedge pattern will become invalid if we exit through the apex. The buy zone is based on the impending convergence of the wedge. Any lower and we breakout to the downside. For this reason I have set my stop loss at 21 sats.
The first sell zone is set to just below the resistance level I see created early on in the wedge pattern where we saw HOT trading for a number of days before eventually falling.
The second sell zone is set just below the top of a move of 35 sats up, which was the magnitude of the last big bull move for HOT, as seen on the chart.
My only concern here is that if BTC decides to do anything crazy, it could very well send us back to the drawing board looking for next supports, but our stop loss at 21 sats should have us covered in that scenario.
Thanks guys! Please leave comments and suggestions below. Happy trading!
- Jesse
Here we see HOT/BTC on the daily chart with a very clearly defined falling wedge with 3 touches on each wall, suggesting a strong correlation with the pattern. RSI has been on a steady decline throughout this move, as has the trading volume, which at the moment of writing this analysis is at one of its lowest levels for the year.
So now we see ourselves approaching the apex of the wedge with the 50EMA (orange) closing in. A breakout will need to occur soon or the wedge pattern will become invalid if we exit through the apex. The buy zone is based on the impending convergence of the wedge. Any lower and we breakout to the downside. For this reason I have set my stop loss at 21 sats.
The first sell zone is set to just below the resistance level I see created early on in the wedge pattern where we saw HOT trading for a number of days before eventually falling.
The second sell zone is set just below the top of a move of 35 sats up, which was the magnitude of the last big bull move for HOT, as seen on the chart.
My only concern here is that if BTC decides to do anything crazy, it could very well send us back to the drawing board looking for next supports, but our stop loss at 21 sats should have us covered in that scenario.
Thanks guys! Please leave comments and suggestions below. Happy trading!
- Jesse