Crypto charts are flooding with parabolic action at the moment. Full market cycles are happening at time price momentum I personally haven't seen in a long time. A parabolic advance is essentially four consecutive advances with a base followed by a blow off top.
Due to the speed of the move, the smart money play is actually to short the blow off top rather than long the advances as the blow offs are violent, abrupt and typically retrace 65-80% of the move There is also little hope for a bounce until 50-70% retace of the move after a blow off and since fomo people usually buy the top, there is also a ton of overhead supply.
Loopring (LRC) Is one such advance and the entire parabolic move took less than 5 days which is why crypto trading is a ton of fun.
This is not investment advice just wanted to share what I am seeing. Cheers.
Due to the speed of the move, the smart money play is actually to short the blow off top rather than long the advances as the blow offs are violent, abrupt and typically retrace 65-80% of the move There is also little hope for a bounce until 50-70% retace of the move after a blow off and since fomo people usually buy the top, there is also a ton of overhead supply.
Loopring (LRC) Is one such advance and the entire parabolic move took less than 5 days which is why crypto trading is a ton of fun.
This is not investment advice just wanted to share what I am seeing. Cheers.
Comment:
I charted the entirety of the move too aggressively. What i constructed as a blow off was actually the 4th base. Didn't take the trade as there is no liquid shorting market. More of an informative post that people need to be careful of these types of moves as when they self destruct, they collapse. The correct short is to wait for the throwback and breakdown on heavy volume.