NOTE: ZOOM OUT TO SEE ALL THE WAY BACK TO AUGUST 2021 to make sense of this
Here we are... in the mixt of the most infamous parts of the crypto market cycle: The Start of a massive Bull Run. As we finally hit the first major retracement level. The question stands? Where do I buy? Where (too late now) would I short to? Where do I put my stop loss?
Here is what I see:
1) Slight Head and Shoulders pattern forms in area around reversal, indicating bearish impulse.
2) BTC ranges between the 50% fib and 38.2% fib for a few days of time. This tells me, that 50% line will most likely serve as the pivot point back upward. I would put my stop loss probably somewhere in the middle of the 50% and 38.2% zone but beware of stop loss hunting that will likely occur before the up-swing. If you are margin trading, I would recommend setting a buy zone in that zone as well to counter the effect of a potential hunt.
3) Historical situations show that most of these retracements tend to occur with similar fashion. I have zoomed out (zoom in on specific current zone and August 21st, 2021 zone for comparison.)
In comparing the zones: Notice the similar structure of the initial breakout/retracement pattern occurring in bot areas.
**This does bring me to the point of addressing how this comparison does not line up with my last point. This is because this time period showed more resistance between the 23.60% zone and the 38.20% zone while the current shows what I mentioned before. Things may be similar, but rarely identical in this time and age.
4) The aforementioned zone in August 2021 shows a similar behavior as we analyze wave trends. We see a two pretty large impulses followed by the retracement period and as seen in August, that leads to an even larger breakout.
5) RSI typically dives down to get close to or touch off the 30% line leading into a bullish swing upward.
I'm pretty certain that we are approaching a very clearly bullish segment after a cold crypto winter.
Make a move, make some money.
Here we are... in the mixt of the most infamous parts of the crypto market cycle: The Start of a massive Bull Run. As we finally hit the first major retracement level. The question stands? Where do I buy? Where (too late now) would I short to? Where do I put my stop loss?
Here is what I see:
1) Slight Head and Shoulders pattern forms in area around reversal, indicating bearish impulse.
2) BTC ranges between the 50% fib and 38.2% fib for a few days of time. This tells me, that 50% line will most likely serve as the pivot point back upward. I would put my stop loss probably somewhere in the middle of the 50% and 38.2% zone but beware of stop loss hunting that will likely occur before the up-swing. If you are margin trading, I would recommend setting a buy zone in that zone as well to counter the effect of a potential hunt.
3) Historical situations show that most of these retracements tend to occur with similar fashion. I have zoomed out (zoom in on specific current zone and August 21st, 2021 zone for comparison.)
In comparing the zones: Notice the similar structure of the initial breakout/retracement pattern occurring in bot areas.
**This does bring me to the point of addressing how this comparison does not line up with my last point. This is because this time period showed more resistance between the 23.60% zone and the 38.20% zone while the current shows what I mentioned before. Things may be similar, but rarely identical in this time and age.
4) The aforementioned zone in August 2021 shows a similar behavior as we analyze wave trends. We see a two pretty large impulses followed by the retracement period and as seen in August, that leads to an even larger breakout.
5) RSI typically dives down to get close to or touch off the 30% line leading into a bullish swing upward.
I'm pretty certain that we are approaching a very clearly bullish segment after a cold crypto winter.
Make a move, make some money.
