I am thinking 2400 holds up and its a short term bottom ...bullish RSI divergence on a daily. I think this will play out to the upside.
The big question is will the rally be capped... was this wave C and did it put in a bottom???? or is it end of wave A and the rally will be wave B and we have one more low to put in?
I still see too many people calling this the "bitcoin bottom" ... way too many posts and sentiment to "price average down" ... meanwhile I dont think we have heard the worst of what this virus has to offer yet. US is just now doing local shut downs, not shutting the entire country down. Also, layoffs by major corporations just started today ... I think more lockdown/layoff news is to come which will spook people some more.
Too soon to call a real bottom right now.
So I think the play for now is ....
Due to how correlated these assets have become (risk on/off), I would be trading crypto based on S&P moves. Buy it all back up (stocks and crypto) right now and see what happens at around 3000 on S&P 500, which will be close to 61.8 fib retrace of this melt down ... I would hope it makes it here and look to unload everything.
Then wait and see ... Place limits buys below 2400 in case wave C starts. Once wave C completes, I think at around 1700, then thats the low and let it ride. Or ... if 3000 breaks, wait for pull back down back to 3000 and look for a healthy bounce to confirm 2400 was the low.
The big question is will the rally be capped... was this wave C and did it put in a bottom???? or is it end of wave A and the rally will be wave B and we have one more low to put in?
I still see too many people calling this the "bitcoin bottom" ... way too many posts and sentiment to "price average down" ... meanwhile I dont think we have heard the worst of what this virus has to offer yet. US is just now doing local shut downs, not shutting the entire country down. Also, layoffs by major corporations just started today ... I think more lockdown/layoff news is to come which will spook people some more.
Too soon to call a real bottom right now.
So I think the play for now is ....
Due to how correlated these assets have become (risk on/off), I would be trading crypto based on S&P moves. Buy it all back up (stocks and crypto) right now and see what happens at around 3000 on S&P 500, which will be close to 61.8 fib retrace of this melt down ... I would hope it makes it here and look to unload everything.
Then wait and see ... Place limits buys below 2400 in case wave C starts. Once wave C completes, I think at around 1700, then thats the low and let it ride. Or ... if 3000 breaks, wait for pull back down back to 3000 and look for a healthy bounce to confirm 2400 was the low.