I originally setup my chart using the daily time frame and added support resistance based on the daily time frame (outlined in blue). Because of the irregular growth and downfall also known as tulip mania, the daily time frame offers very little information other than we've been in a long correction and might drop to 0 if you believe analysts.
Will it go back up during the summer? I don't know. I'm not looking to hodl. I'm looking to trade it and so after looking at 6H, 4H and 1H time frames, I've come to the conclusion, there's enough action on the 1H time frame to offer traders opportunities.
I've outlined my support/resistance areas in RED for the hourly chart and there are clear spots where buyers are willing to buy and where sellers are willing to sell. Given it's on a rather strong support area (outlined in BLUE), one would be tempted to long right away.
Based on the previous few hours it seems the support area is crumbling and is testing the hourly support area around 6600. Any bullish reversals around 6600 could offer a small opportunity to go long.
Although the trend is strongly going down, waiting for a retracement to 7000 before going short would probably be prudent. Opening any position in a ranging market is never a sure thing and so I would reduce my risk/reward ratio in order to guarantee profits.
Will it go back up during the summer? I don't know. I'm not looking to hodl. I'm looking to trade it and so after looking at 6H, 4H and 1H time frames, I've come to the conclusion, there's enough action on the 1H time frame to offer traders opportunities.
I've outlined my support/resistance areas in RED for the hourly chart and there are clear spots where buyers are willing to buy and where sellers are willing to sell. Given it's on a rather strong support area (outlined in BLUE), one would be tempted to long right away.
Based on the previous few hours it seems the support area is crumbling and is testing the hourly support area around 6600. Any bullish reversals around 6600 could offer a small opportunity to go long.
Although the trend is strongly going down, waiting for a retracement to 7000 before going short would probably be prudent. Opening any position in a ranging market is never a sure thing and so I would reduce my risk/reward ratio in order to guarantee profits.