Hello Riders, as we have been saying, Bitcoin and Nasdaq were in an excellent risk/reward zone.
Now we have already had an initial bounce, so the risk of entering is increasing and what we should focus on is detecting when the downtrend is broken to place new midterm longs, the good news is that Bitcoin as i write this is already breaking the 1st downtrend line. We also started to see signs of crypto trying to break the correlation with stocks, which would be great signal for altcoins.
If Bitcoin pump continues remember that there will be plenty of upside on lagging coins (find coins that are still close to macro support on the 1W chart)
KEY LEVELS TO WATCH
Once each level is broken, there is little resistance until the next one, so it is generally good to take profits as we approach each level and look for long trades again once they are broken.
For Stocks (nasdaq):
- Macro downtrend line: 12,800
- Rider Band upperlimit and super trend downtrend resistance: 11,800
-Macro downtrend: 25,000
-Bonus: 22,800 Rider Band lower limit on the 1W chart. -Daily super trend downtrend resistance: 20,800
An Example on how to look for Altcoins with high bounce potential(FTM) - Open the 1w chart
- If there is no horizontal line, look for previous cycly lower low and see if the asset is close to those levels right now.
- Bonus points if there is a big gap between current price and Rider Band.
- Invalidation would below latest lower low wick.