IOTA was Overbought twice in a short period of time. There will be heavy volatility in the near future, and market consolidation is to be expected.
Given the current trends, I personally believe that shorting IOTA would be the best choice here. The price is nowhere near a 1/1 retracement, and is showing little signs of a reversal into a bullish trend in the (very) near future.
Also, with all the other coins I took a look at, it looks like a correction is imminent across the board. Be cautious!
I'll take a look back soon to help confirm/deconfirm what is being shown right now, but it's not looking too good.
Trade closed: target reached
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LETS GOOOOOOOOOOOOOOOOO!
Closed position.
Comment
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We broke the triangle resistance line! Turning bullish?
I agree with the technical. However you are ignoring the ENORMOUS potential IOTA has. With a creative mind you can see the baffling potential of the tangle. So I expect this to be bullish. Party can be pooped a little by BTC but no way this is dropping if BTC doesn't freefall.
yeeyee2020
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@DaDude, Of course! I've always said that TA should be used no more than a tool to help visualize the market psychology, and to further help contextualize the economic underlying principles in play.
TA is only 20% of it. The other 80% is purely fundamental.
TomHess
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I fully agree. Look at the weekly or daily chart, and you see,IOTA does now in big, what it usually does in smaller times frames. From its move down it reached the 71 Fibo, now felt back to 50. Next I expect minimum 23 Fibo from the big correction (2.15 at Bitfinex), maybe even 1.70 (the retracement of the 71 retracement. This would look like a healthy trend.
But I also take a look at BTC. And I have the feeling, this correction maybe not yet is done. There´s a big chance to see 8.000. After that, when it works through its Fibo retracements, this could lead in a longer range within the correction distance to execute all fibo retracements of all levels. Hard to say, which Fibos it will hit one by one. At least this would also make sense, as it looks like a synchronization with other markets. I also realize, IOTA follows Bitcoin, but not to the same retracement levels.
But beside that it is really hard to say, what happens next. Everyone speaks from a BTC bubble. I see more a Dollar and Euro bubble, as they pumping so much money (quantity easing) into the markets. I guess, it depends, if more people understand, that cryptos can´t be manipulated in the same way. I´m pretty sure, the blogchain is the future of money and the time of fiat money comes to an end. But the BTC is something like the first mobile phone (like feature phone) while now the future is in smart phones.
In this way it has to be understood, more countries try to put restrictions on cryptos. It´s not about money laundring, like they say. They just try to do the next step with leaving cash money. Just to have more (perfect) control over people, not because of terrorists, this is only to have a reason to "sell" this to people. It remembers me to the 90s: what? Online Shopping? What kind of bullsh*t! And nowadays? But now it goes deeper. And I can not see, leading countries will give up the power, the money monopoly gives to them.
Maybe someone think, this has nothing (yet) to do with cryptos. But now cryptos reach a system relevant size. And people leave traditional fiat money. This will lead in confusion, cause politicians and main medias will fight against cryptos (the last years everyone were saying, how great a globalized world would be, now they have the chance for a global currency and they start to fight it - cause all globalization so far were not made for people, but just for elites and their profits). That´s why now maybe after this correction a range comes; governments be the bear, people the bull; let´s see, who´s stronger. But it still has way more potential. Depending on the money quantity (fiat), I just made the calculation with Euro. To have the same value like Euro, Bitcoin must reach between 350,000 and 450,000 per coin.
Rare to find realistic ideas here, as it seems, many people never have seen a bearish nor a real range market. That´s why I like your trading idea