qrDanielqr

IOTA +60% RUN, OR DO WE GO FURTHER DOWN?

Long
BITFINEX:IOTUSD   IOTA / U.S. Dollar
Hello Cryptnonauts

Let's take a look at IOTA! Recently we just saw IOTA Facing a new resistance Level between around 1.3275 and 1.3475. After a quick bounce away from that resistance, we are now looking forward to rechallenging this level.

So, therefore, you might ask if you should go and buy a potential breakout or maybe short at the resistance? These are good questions, and I try to give you a few possible setups that might appear.

Let's Take a look at the Bigger Picture first!


On the 1 Hour chart, we see that we are in a significant trend facing the bottom side. So generally speaking, a movement further down might be more likely at this point. But a trend can break every time, so we are also looking at the potential longs.

So let's go and cover a few potential scenarios.


Scenario 1 (Short) down to the support level

1Hour Chart

5Min Chart

At our Short scenario, we might move now a little bit more up until we either hit the resistance level or the red Trendline and push back from there down to our support level around 1.0400

So for potential entries, we would look at movements that are moving back to the downside from those levels.



Scenario 2 (Short) down into a Sideways Market and a potential Trendline break

In our second Short scenario, we are looking for a potential ending in a sideways market until we break the trend line for a bullish movement.
We are looking at the same Setup as in our first Short scenario but with another target.

Same Chart Setup for the Short position

Facing the new build support?

In this scenario, we are now looking at the new build support from the price bounce around 1.2000.

That level might end up in new support since 1.2000 also is a pretty easy number to trade, and it might stick in traders' heads for potential long positions. That's why we might end up in a sideways market, which has a great potential to break the overall downtrend and end up in a bullish market.


Scenario 3 (Long) Trend and Resistance level Breakout

Once Again, we are looking basically at the same chart, but with two potential breakouts this time. We can either directly break entirely through the resistance and trend levels or, what I believe would be more likely, break through the first Trendline, turn the resistance into a support for a price correction and then continue to breakthrough.

direct breakthrough

Trend Breakthrough with a minor price correction to the past resistance that then acts as support before we entirely turn into a bullish trend .

Those are the potential setups and movements I am looking into to make some trades. I hope I could give you some insights into my thoughts.

Happy Trading

Join my private Trading Group