BOTTOM LINE: BTC failed at making a new wave cycle high (so far) and now the BEARS have the ball with $9500 the trigger for what could be a BIG DROP for BTC and altcoins. This means – PROTECT PROFITS but it also means buying opportunities at lower prices – possibly MUCH lower so caution advised!!
HERE ARE THE DETAILS
Let’s start with “where we are now”: a summary of the big picture intermediate term which we believe is vital to most if not all solid trading and position management strategies:
BTC is currently moving down (some form of correction) in a BULLISH WAVE CYCLE – the updated chart below shows this but look at a weekly or monthly chart if you really want to see how strong the current moves have been for BTC
ALTCOINS continue to be at the mercy of moves by BTC (and are currently underperforming BTC as the ETH chart clearly shows – most alts are similar or worse)
As we stated in our last post, until further notice, BTC IS THE CRYPTO MARKET
Also — be very aware that this bull wave cycle has moved from $3500 to $14000 so BTC and altcoins can drop A LOT and stay in a bullish wave cycle.
WITH THOSE KEYS IN MIND — WHAT’S THE TRADE NOW?
FOR ANY TRADE: It’s incredibly high probability that any and all crypto trades should consider what’s going on with BTC (unless you know something about a coin that doesn’t show in the chart patterns)
FOR BTC — we’ve shared key targets with you for months and they continue to be important in terms of pattern analysis. This gives trades the opportunity to plan trades for
Entries (for short term trades)
Opportunities for “Reentry trades” when price gets back above a key level you believe can hold
Today’s chart indicates $9500 would be the highest probability target to use for trading though $8400 is also a key level for a reversal point. After that $7250 becomes the “line in the sand” again (patterns have shown this price matters for WELL OVER A YEAR!)
Crypto history has shown altcoin crashes far worse than BTC during this time of year. If BTC drops this could be what’s happening again and traders should NOT assume altcoins will move higher if and when BTC moves higher — at least it has to be considered that altcoins will not keep pace with BTC until a clear strong bullish move emerges in the large altcoin market.
FOR BOTH BTC AND ALTCOINS — SCALING IN BECOMES AN OPTION BUT DON’T RUSH!
If probabilities are correct and we are in a bullish wave cycle, then surprises usually favor THE BULLS, so a significant drop can create opportunities for scaling in to coins you like long term. The current patterns suggest to GO SLOWLY on any scaling in and to consider that BTC can drop to $5000 or even lower and still be bullish (though $7250 is the current “line in the sand”) ETH can go below $100, $XRP can drop to .25, etc.