What to look for this week and how to play it.
Since BTC is the supreme leader of all Crypto, my TA will mostly be about BTC. So, what can we look forward to in the next few hours or days? BTC has hit resistance in the form of the 50MA on the 3-day timeframe, but I'll explain this in the last paragraph to tie it all together.
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Right now let's look at the chart above, the moderate resistance (#1 on the main chart) was the trendline we were traveling on before melting down to that 3 week sideways range, BTC hit it and it was rejected. That line was support for many weeks, and it now becomes resistance as you can see. I would think this is a fair chance to catch BTC at a low point again IF we are still on an uptrend. This is how you would play this one. Draw a fibo scale and set your buy orders at the 38.2% or 50% point (your choice), or you could go extra safer at 61.8 but sell if it continues lower.
If we go for the jugular and challenge the Major Resistance (#2 on the main chart above) once we hit it we may also retrace to the 50% or 61.8% point -- which is another chance to catch it low. DO REMEMBER TO SET YOUR STOP LOSS ALWAYS. BTC does not owe us going up or down, at any point the trade can turn against you. How you make real money in this asset class is by trading long term. My Motto is to take 3 large bites out of the apple a year. You can easily double your money that way every year.
Short or midterm trading can be difficult and maybe profitable but you will give back a lot of your gains if not all of it. You also have to play against some real monsters (Your exchange.) Stick with my system and you'll make a profit, do it the way I do it and you'll double your money in the long term.
Take a look at this chart (The 3D timeframe), I've shared it a few times. Here you can see where we stopped falling last week (right at the 61.8% and the 100MA.) Those are two powerful cousins offering strong support. Also currently struggling with the 50MA acting as resistance as I mentioned above. This little run can stop at the red resistance line, that's the one we are traveling towards, that's where you need to close all short and midterm trades and jump back in once we get confirmation over the line. Long term folks continue to hold until price hits your offload points. For example; LTC at $200.00 is my long term goal.
This is a link to my live chart so you can keep an eye on that battle. tradingview.com/chart/0FJOpaqx/
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