As we have been talking about for the past few weeks, NASDAQ and cryptos continue to be in a moment of caution as the NASDAQ is below the daily ribbon, was rejected by the trend line and has re-entered the dark red zone of our indicator TR Fib perspective (see past edition here)
However we can see how Bitcoin continues to hold the crucial support level of 19.5K while some altcoins are testing weekly supports, some of them even with a "Probable bounce" signal on the weekly chart.
This context invites us to continue trading, especially on small timeframes and aggressively taking profits.
What can we do for now:
- Map weekly supports for altcoins and stocks as we watch for signs of a bounce near them to enter positions with a high R/R ratio. This post can serve as a reference LINK.
- Use the 15min-1hr timeframes to trade Bitcoin's sideways movement, following bounce/TP signals and supp/res levels.
- Map the altcoins that have not yet bounced and are in daily support. These will move quickly if Bitcoin and stocks bounce
- Use our Macro View Indicator to detect DCA events (dark red zone + pink/purple circles are ideal)
Moving sideways on support area. Last Bounce signal had no effect besides holding the price (which is not bad at all!)
We could try longs with a tight stop loss from here if we get bounce signals on lower timeframes, however if we do get a daily close below 19.5K, will be looking to short alts.
Back into dark red zone, which is not good, we can still get a higer low, but we need to see some bounce signals before we bet on it.