90.58 is the reversal zone boundary relative to the 108 area low made back in April. The fact that price has taken out the high of the previous day's candle is a sign.
As I wrote in my earlier report on S.C., we do need to be aware of some of the major economic events. You don't need to know the details, you just need to know what time the economic event is going to occur. Events like NFP, FOMC and any other interest rate sensitive releases for major currencies.
Do not forget that the digital coins are exchanged for local fiat and we take fiat stability for granted since it moves only fractions of a penny.
Today the ECB hammered the forex market and this markets reacted. Again, it is just good practice to be aware of the major events. It can help shed more light on particular price action or levels.
The big question now is can this bounce evolve further into a sustained price recovery? To offer some perspective in this area, I can say that at S.C., we issued a long idea in ETH. Basically, no matter what coin you bought, it is all the same trade. Since structure is still intact, we have chosen a conservative target.
The strategy behind the target? Since potential is still in these markets, we would rather take profits sooner than not to mitigate risk.
And since all these markets are just following BTC , the same philosophy should apply. In this market, the 112 area would be the nearest target since that is where the is located.
Also the 125 resistance is the .382 of the recent swing. If price makes it back there, that would be a convenient second target. Keep in mind as long as price stays below this level, it is a better idea to remain conservative with short term long positions.
In summary, focus on price and structure and you will align yourself more with probability rather than randomness. The market dictates its intentions through its natural formations which are nothing more than patterns expressed through order flow. Like I wrote earlier, it is a good idea to be aware of events that can affect a market, but do not try to guess how the market will be affected. Let the emotions of the crowd bring the setup to you, not the other way around. Check S.C. for updates on our swing trade long.