We?re starting the week with another large gap up for BTC (as it blew past $8400 ? see prior charts ? key price levels matter!) and here?s why how the week ENDS is likely important:
1) As the XBT futures chart below shows, this is the 3rd weekly gap in recent weeks. 3rd gaps rarely hold so it would be another Intermediate term bullish sign for BTC if we close the week above last weeks high of $8390 ($8400)
2) The week is off to a big start in terms of volume, likely to be higher than last week. Will that be a sign of new buyers jumping in or sellers cashing out? We?re likely to know (at least for short-term purposes) by the end of the week.
3) The current high is $9000 bringing the key price level of $10,000 into range. How price reacts to a test of the $10,000 level will be important.
For now, focusing on the $8400 support level for short term trade strategies is a safe way to play BTC, but, remember we still have two gaps below $8400 so $7250 is still the highest prob ?line in the sand? for BTC?s current bull wave.
ALTCOINS ? ZEC AND WHAT ABOUT THE MID AND SMALL CAPS – 5 TO WATCH NOW
It?s worth noting that the altcoin market is split at the moment. We?ve focused on the large altcoins for our trade strategies as that is that safest approach coming off a long bear market, and that approach has paid off handsomely with big moves in almost all the big coins including BNB, ETH, EOS, LTC, XRP and more (even our speculative BSV trade is moving higher if you reentered above our stop loss of $95!)
Today we add a new trade for ZEC to our list of larger cap safe trades as new patterns have emerged. See chart below for details
With large altcoins all well off the lows, we think it?s a good time to consider the question, what about the mid and small caps? In the past few months we?ve shown trade strategies for some HUGE moving smaller coins like:
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ENJ
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WAVES
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VET
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GNT and of course
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DOGE
plus others
Non of these smaller coins have broken out of recent bullish patterns vs the USD like most of the larger altcoins have. Are they going to be left behind or will there be another rotation into SOME (ALL?) of these coins to take them higher IF BTC moves up to $10,000 or higher. We share the ENJ chart that says the bullish case is far from dead.
However, it?s important to respect market price action, and as of now, the big momemtum is in BTC and the big coins so be sure to be very selective in choosing smaller coins to trade and set position size on trades accordingly and keep smaller alt trades at the ?speculative level? because for now at least, that?s where patterns say they belong.
NOTE: ZEC CHART SHOULD SAY ENTER IF ZECBTC (NOT BTC) CLOSES ABOVE .01.
