Looking at that bounce we had today, combined with a double bullish divergence on the 4HR RSI and also a weekly and daily SFP chances are likely we have our local bottom here.
As usual, when market became bearish (like 110% of crypto twitter since Saturday) it's time for market makers (MMs) to take advantage of a uni-directional way of thinking ("major support is broken", "we are going to 1k", "alts will bleed to death", "bear market will last 2 more years"...and so on).
When we actually made our new low at $5,755 today, I didn't see any sell volume and didn't get surprised that MMs -0.13% chose that level to print that huge $500 green candle in one hour. All retail traders who played the breakout to the downside at 6k were forced to close their shorts added to the fact that as usual, some FOMOed back in seeing we were going back above 6k level.
Considering the buying volume that came in, the different indicators ( bullish divergences, daily & weekly SFP) and overall market sentiment, I would feel comfortable going long on a retracement. I'm not saying this is our ultimate bottom and we're on the road to $100k (you know it's not my style) but I'm feeling quite confident our local bottom is in for the next days/weeks
We may actually not retrace to force retail traders to FOMO back in. As always I'm not gonna chase the price. If price goes down to my entry, great, i'll focus on the next trade setup.
Concerning my entry, I'm looking at the 1HR bullish breaker between $5,900 and $5,934. The 0.705 zone (Optimal Trade Entry) at $5,900 adds confluence to that zone. I will place my SL below swing low ($5,755).
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As usual, when market became bearish (like 110% of crypto twitter since Saturday) it's time for market makers (MMs) to take advantage of a uni-directional way of thinking ("major support is broken", "we are going to 1k", "alts will bleed to death", "bear market will last 2 more years"...and so on).
When we actually made our new low at $5,755 today, I didn't see any sell volume and didn't get surprised that MMs -0.13% chose that level to print that huge $500 green candle in one hour. All retail traders who played the breakout to the downside at 6k were forced to close their shorts added to the fact that as usual, some FOMOed back in seeing we were going back above 6k level.
Considering the buying volume that came in, the different indicators ( bullish divergences, daily & weekly SFP) and overall market sentiment, I would feel comfortable going long on a retracement. I'm not saying this is our ultimate bottom and we're on the road to $100k (you know it's not my style) but I'm feeling quite confident our local bottom is in for the next days/weeks
We may actually not retrace to force retail traders to FOMO back in. As always I'm not gonna chase the price. If price goes down to my entry, great, i'll focus on the next trade setup.
Concerning my entry, I'm looking at the 1HR bullish breaker between $5,900 and $5,934. The 0.705 zone (Optimal Trade Entry) at $5,900 adds confluence to that zone. I will place my SL below swing low ($5,755).
If you like my work and want to show your support, please LIKE/FOLLOW. This helps me to know what kind of content you enjoy !
Trade active:
Well looks like it was indeed ! After a long period of - boring - consolidation looks like market makers filled their bids below 6k before pushing it up to 6.3k. We should see some more upside in the coming days
