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Weekly Newsletter

Updated: May 16, 2022


Hi Riders, As predicted, we started having some sideways action as $BTC was oversold and there is a strong support at 28.7K.


While $BTC is ranging is much more easy to trade on lowertimeframes (i.e:1h and 4h) as it tends to bounce from support/resistances more often.




DAILY TREND


Facts (Daily Timeframe):

  • Trend Indicators still bearish. Above 37.6K indicators will start flipping bullish.

  • No reversal/divergence signal yet

  • Strong support at 28.7K, it is is the last relevant support until the 20-23k area.

  • 11% price gap between 30K and Rider Band lower limit (room for a bounce)

  • $BTC is not oversold anymore.

  • MacroView Indicator at orange levels.

  • Above 37.6K indicators

  • NASDAQ at support as well.

Conclussions:

  • Plan still the same: only lowertimeframe trades for now, with clear Stop loss and agressive profit taking (or just wait). Careful with alts, will overeact to what BTC does.

    • In this case the 28.7K level provides a clear reference level for our trades, so good R/R ratio if you open long or short using that level as stop loss.

    • For now i incline to believe that a retest of 33K or Rider Band lower limit is very likely.



MACRO VIEW


We got a few orange circles this week. However, orange circles have never appeared at the macro bottom (there is usually more pain until the pink - purple appears).


However, the bottom could be already in as there are too many people aiming for 15-22K. Let's not speculate, just follow a plan.


Use this indicator only as reference. IF we do get pink-purple colors then we know that most probably the bottom is very close in terms of time so we could start DCA (ideally start DCA when price starts to recover after a pink-purple), meanwhile we trade on lower timeframes (or just wait). Then when $BTC starts closing above 37K we look for midterm positions.




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