Welcome to this week's trading newsletter! As we mentioned in last week's newsletter, crypto prices were at a support level, making it a good time to look for quick long positions. After that, we saw a tremendous rebound of BTC from 20 to 25K, as well as another rebound of Nasdaq. However, SPX fell below the band and is now struggling to recover.
Looking ahead, we want to see two things happen to continue the medium to long-term bullish movement: 1) SPX closing a full weekly candle above the divider band, and 2) Bitcoin closing on the 1D candle above 25.2K.
In this edition, we will focus on two things: 1) analysis of the 1D chart of Bitcoin and 2) updating our list of lagging coins so that we have it handy in case SPX recovers and the market enters a second surge. Stay tuned for some valuable insights into these topics!
1) Bitcoin 1D chart
In the 1-day chart, Bitcoin is at a crucial point of decision. The price has reached the red take-profit zone for the third time, and the money flow has dropped to 0, threatening to turn red on the oscillator.
On the trend indicator side, we have recently received a bullish confirmation signal from the trend hunter (green circle above candle) and the rider band has turned green again. This indicates that we are literally witnessing the recent bullish trend fighting with the take-profit zone.
In conclusion, I am waiting for a daily candle close above 25.2K to deactivate the red zone. When this happens, I will start entering long positions in the lagging altcoins
(coins below the yellow divider band) based on the daily chart. It's worth mentioning that if BTC closes above 25.2K in the coming days, the oscillator's money flow will remain in the green zone.
Bonus: We are currently waiting for a bullish green circle confirmation for Bitcoin, which is expected to be confirmed on Sunday.
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2) Lagging coins
Recently, I shared a list of coins that are lagging behind Bitcoin on Discord. It's important to pay attention to these coins in case Bitcoin continues its bullish momentum, as they will eventually grow strongly. Do not pull the trigger so fast, there will be plenty of time to trade these coins if bitcoins starts trading above 25.2K and spx recovers.
For this exercise, we used the Rider Algo #2's Divider band and enabled the table. We can see that Bitcoin is currently 21% above the band, so we'll be looking for coins with good fundamentals that are below the band or less than 5% above it. Keep an eye on this list and use it as a tool to potentially identify opportunities in the market.
Here is the list shared on discord:
Here is a comparison between a lagging coin and bitcoin, using the band and the table: