We?re at a key point in the current correction from the recent top and now can share useful updated technical analysis on multiple key coins, but we think there is one thing to watch that stands above all else:
THE MOVING AVERAGES ON THE BITCOIN FUTURES DAILY CHART
Why? Simple. Nearly every other chart?s moving averages (including BTC) have crossed, but as the chart below shows, BTC futures are just meeting now. That set up usually brings BIG MOVES.
Does that mean we?re definitely headed lower? NO. The moving averages could hold and bounce higher signaling the start fo a new bull move, and price moving above $9500 without filling the gap at $8400 range and now above $10500 adds to the bullish case. Altcoins are showing a solid move higher too ? that?s usually bullish for BTC.
We will also mention that we just saw an incredibly bullish move up from $6500, and history says that when BTC turns bullish, it often pulls back sharply but defeats many bearish patterns.
However, even considering all the bullish factors, there is currently a SLIGHT edge to more downside for multiple reasons ? most of which are outlined on the charts below. A slightly bearish edge can turn bullish very quickly so let?s review current trade strategies based on the current set ups:
TRADE STRATEGIES
BTC: Watch for a move higher closing well above $10,500 with increasing volume. This would create an entry or add trade with a stop under $10,500 or $9,500 depending on your risk tolerance. Under $8400 as a stop loss could also be considered for ?Scaling in trades? Below that $7250 and then $5000 come into play.
BNB: We?ve made no secret that we don?t think BNB is ?safe trading?. The chart continues to tell us WE?RE WRONG, so we continue to share the latest updates with traders but caution is advised. The huge volume spike on the move up from the bottom has ?manipulation? written all over it given BTC most large altcoins coin did not have this pattern, but it?s still a great trade set up where entries or adds can be made on dips with a stop under $27 or the current $24.XX low for trades that are scaled in.
ETH: Highest prob now is scale in trades or additions with stop under current lows around $190. HONOR STOPS for ST and IT positions as ETH could fall a long way if current bear pattern breaks down. First target would be $150 range but $125 and under $100 would also be targets in play.
OTHER ALTCOINS: As usual there are spikes in the altcoin market for various coins, but overall for the large altcoin market there are similar patterns with similar trade strategies. A few notables stronger than ETH but not as strong as BNB would be TRX and LTC.
SIDELINES – Not a horrible place to be with ST and even IT trading funds while all this plays out? SAFE trades are likely to be found if/when BTC gets above $12500, but we?ll update if/when we get there.
