Hello Traders and Analysts,
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Where investors Dollar cost average in the long term, the buying or selling average will be highly beneficial to the trader opposed to the traders who lose out upon short term positions.
Master Key for zones
Blue = Monthly
Purple = weekly
Red = 4 Days
Yellow = 16 Hours
Orange = Daily
Dark Green = 8 Hour
Grey = 4hour
Pink = 1 hour
Please see the previous chart idea to understand where price was heading
Monthly Imbalances
The established upper imbalance has been printed - with the price $35 - 53 USD.
Price created a monthly candle close bearish but with two weeks out of the month whipsawing offering an opportunity for the buyers to obtain a second entry.
The very strong imbalance between $1.38-5.08 shows the great opportunity for longs only, it was just a case of buying in, and when price reverted back to test the low as these newly established trading ranges offer. A clear opportunity to add is recognised here - *subject to higher timeframe whereby closes are filling the wicks and rejecting the monthly.
* Caveat - July has not yet completed - so the rejection can be retested and close lower - bringing into play $8-10 range where price will offer some rewarding opportunities.
See what price could do;
Weekly Imbalances
The weekly has still provided a clear opportunity for sells to be added to the original position.
Price has tested the weekly and "rejected" in most eyes, however this is a pivot point, but has created a trap for the buyers.
What happens here is where attention has been increased for gearing up for a bull run. Buyers have will drive price higher where sellers will be looking for buying impulses. Price will ultimately move within a correlation range and follow the BTC and ETH market cap from a fundamental prospective.
The overall investment strategy here is to dollar cost average and then await the imbalance for the price to create the larger buying opportunity.
Bullish scenario
Before the selling opportunity occurs. Note the valid weekly imbalances to take profit or enter new reactive levels where the probability to buy, sell will present opportunities.
Daily Imbalances
The Daily shows alignment with the reactive levels at the 50% Fibonacci and again at 0.236 level.
While price has created the temporary pump - the reactive zone, where price has yet to clear the imbalance to shift to buying imbalances.
Await the change of hands
- this is the clear target. Where the logical neutral mind set is in position - price can provide valuable information to those who wait.
Where BTC is the market leader, prices follow in correlation
See the zone above - with no "test of the fractal"
Overall, yes the market is in a bullish structure using the inception and three month chart, conversely price will always return to the imbalance - when? This is the question.
BTC USD, ETH USD comparison
As the two largest cryptos are both here and where the correlation of smaller alternative coins - the market is in "euphoria mode" but to prevent losing out. Paying attention to the critical levels highlighted below will assist.
Where price breaks $2,000 on ETH "Rounded Psychological level", price will created a lower bearish channel formation - the opposite to current situation where price has created a breakout.
See the capitalization of the two correlated pairs with respect to Ethereum Based Link.
Key
Bitcoin - BTC - Blue
Ethereum - ETH - Purple
Link - LNK - White
See the secondary scale showing BTC price chart using the weekly to identify the zone to watch for.
Ethereum pairs correlation to ETH
Weekly Linear Positive Correlation
Where Ethereum has the largest market capitalisation of the Eth token based pairs, the correlated pairs to Link are;
Tellor TRB - 98% positive correlation - cyan
Ox - ZRX - 97% - Orange
Uniswap - UNI - 96% - light purple
Ethereum - ETH - 91% - dark purple
Monthly chart
to show the bigger picture;
note the 93% Ethereum correlation is the key picture in terms on asset correlation.
Do you enjoy the setups?
Professional analyst with 5+ years experience in the capital markets
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Where investors Dollar cost average in the long term, the buying or selling average will be highly beneficial to the trader opposed to the traders who lose out upon short term positions.
Master Key for zones
Blue = Monthly
Purple = weekly
Red = 4 Days
Yellow = 16 Hours
Orange = Daily
Dark Green = 8 Hour
Grey = 4hour
Pink = 1 hour
Please see the previous chart idea to understand where price was heading
Monthly Imbalances
The established upper imbalance has been printed - with the price $35 - 53 USD.
Price created a monthly candle close bearish but with two weeks out of the month whipsawing offering an opportunity for the buyers to obtain a second entry.
The very strong imbalance between $1.38-5.08 shows the great opportunity for longs only, it was just a case of buying in, and when price reverted back to test the low as these newly established trading ranges offer. A clear opportunity to add is recognised here - *subject to higher timeframe whereby closes are filling the wicks and rejecting the monthly.
* Caveat - July has not yet completed - so the rejection can be retested and close lower - bringing into play $8-10 range where price will offer some rewarding opportunities.
See what price could do;
Weekly Imbalances
The weekly has still provided a clear opportunity for sells to be added to the original position.
Price has tested the weekly and "rejected" in most eyes, however this is a pivot point, but has created a trap for the buyers.
What happens here is where attention has been increased for gearing up for a bull run. Buyers have will drive price higher where sellers will be looking for buying impulses. Price will ultimately move within a correlation range and follow the BTC and ETH market cap from a fundamental prospective.
The overall investment strategy here is to dollar cost average and then await the imbalance for the price to create the larger buying opportunity.
Bullish scenario
Before the selling opportunity occurs. Note the valid weekly imbalances to take profit or enter new reactive levels where the probability to buy, sell will present opportunities.
Daily Imbalances
The Daily shows alignment with the reactive levels at the 50% Fibonacci and again at 0.236 level.
While price has created the temporary pump - the reactive zone, where price has yet to clear the imbalance to shift to buying imbalances.
Await the change of hands
- this is the clear target. Where the logical neutral mind set is in position - price can provide valuable information to those who wait.
Where BTC is the market leader, prices follow in correlation
Overall, yes the market is in a bullish structure using the inception and three month chart, conversely price will always return to the imbalance - when? This is the question.
BTC USD, ETH USD comparison
As the two largest cryptos are both here and where the correlation of smaller alternative coins - the market is in "euphoria mode" but to prevent losing out. Paying attention to the critical levels highlighted below will assist.
Where price breaks $2,000 on ETH "Rounded Psychological level", price will created a lower bearish channel formation - the opposite to current situation where price has created a breakout.
See the capitalization of the two correlated pairs with respect to Ethereum Based Link.
Key
Bitcoin - BTC - Blue
Ethereum - ETH - Purple
Link - LNK - White
See the secondary scale showing BTC price chart using the weekly to identify the zone to watch for.
Ethereum pairs correlation to ETH
Weekly Linear Positive Correlation
Where Ethereum has the largest market capitalisation of the Eth token based pairs, the correlated pairs to Link are;
Tellor TRB - 98% positive correlation - cyan
Ox - ZRX - 97% - Orange
Uniswap - UNI - 96% - light purple
Ethereum - ETH - 91% - dark purple
Monthly chart
to show the bigger picture;
note the 93% Ethereum correlation is the key picture in terms on asset correlation.
Do you enjoy the setups?
Professional analyst with 5+ years experience in the capital markets
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
