We are near PEAK FUD
Admittedly, price action has not been great the last few months. Each pump clearly had no volume or momentum. Zoom out though.
When price has only made 2 or 3 challenges to a trend line, price tends to retest the trend line “breakout” before truly reversing. We are at that point now. We’ve already got the FTX debacle and it looks like within the next month we may see something else push us down to 14-12k hitting that trend line. Potentially even a scam wick below that’ll quickly recover into the 12-14k range.
The bullish signs are developing already though, just get through this last shake out. The bull divergence on OBV and one developing on weekly RSI. The RSI falling wedge will be most telling though. Wait for that to break out and you will safely ride the next wave up.
Execution: it is not the time to be picky relying on going all in on the above game plan. You should be 50% invested at this point. Layering in as we go lower over the next month. The risk reward is already there to invest. Don’t get greedy.
When price has only made 2 or 3 challenges to a trend line, price tends to retest the trend line “breakout” before truly reversing. We are at that point now. We’ve already got the FTX debacle and it looks like within the next month we may see something else push us down to 14-12k hitting that trend line. Potentially even a scam wick below that’ll quickly recover into the 12-14k range.
The bullish signs are developing already though, just get through this last shake out. The bull divergence on OBV and one developing on weekly RSI. The RSI falling wedge will be most telling though. Wait for that to break out and you will safely ride the next wave up.
Execution: it is not the time to be picky relying on going all in on the above game plan. You should be 50% invested at this point. Layering in as we go lower over the next month. The risk reward is already there to invest. Don’t get greedy.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.