MAPS mega rally losing steam SHORT
Background:
MAPS has rallied far harder than the rest of the crypto market posting ~8x in 2 weeks. Given that Bitcoin is now trading under resistance (bearish short term thesis for all crypto positions), a hard pullback in MAPS seems likely. Bearish divergence on the H4 RSI coming down from "overbought". Trend angles increased then decreased suggesting momentum is rolling over. Price is trading inside a D3 demand zone now flipped supply. Thin volume profile between $0.68 and previous local high at $0.545
Strategy:
Wait for price to trade below $0.725 and retest to confirm weakness and LH. Enter short with first target at previous local high $0.545 and second target $0.4315. Stop loss above flipped supply/demand zone at $0.85
Invalidations:
Strong LTF retest off the lower trendline or deviation below and reclaim would suggest price is falling back into the upward sloping channel, full close short position
MAPS has rallied far harder than the rest of the crypto market posting ~8x in 2 weeks. Given that Bitcoin is now trading under resistance (bearish short term thesis for all crypto positions), a hard pullback in MAPS seems likely. Bearish divergence on the H4 RSI coming down from "overbought". Trend angles increased then decreased suggesting momentum is rolling over. Price is trading inside a D3 demand zone now flipped supply. Thin volume profile between $0.68 and previous local high at $0.545
Strategy:
Wait for price to trade below $0.725 and retest to confirm weakness and LH. Enter short with first target at previous local high $0.545 and second target $0.4315. Stop loss above flipped supply/demand zone at $0.85
Invalidations:
Strong LTF retest off the lower trendline or deviation below and reclaim would suggest price is falling back into the upward sloping channel, full close short position
Comment:
There was an underside retest of the green box (my trigger) on the 15min chart but I didn't take the trade, happened rapidly and I missed it. Now, price is coiling between the 233EMA and 89EMA (15min). I'll open this short with the same targets if we get a breakout below the 89EMA and confirmed underside retest