Oversold Conditions across the board
A Thread from Trading Room - Twitter
Today we have a very special Tweet thread from our very own Trading Room about the current market conditions. We have transcribed it for you below but you can read it HERE or you can click the link below this article.
Oversold Conditions: The entire market is oversold across all major timeframes. That doesn’t mean we will do a V shape recovery At best we will get 23.6 / 38.2 FIB bounce for some of the major coins and potential 61.8 / 78.6 for trending coins from past few weeks.
How to spot reversals and how to profit in current market conditions? There are two types of coins with two different behaviors Coins that were trending up and pumping hard before this entire dump saga began & coins that were going sideways / down trending.
Coins that were sideways / down trending even before this dump started will be laggards when we get relief rally Coins that were trending up / breaking new highs / strong momentum coins / good hype / big community will recover 50-150% very quickly on relief rallies.
Let’s say a typical down trending coin will do 23.6 / 38.2 coins vs those up trending coins from past few weeks may do bigger bounces. First few attempts may result in smaller bounces and rejection to retest lows as well as we make newer lows.
The short term reversal clue: When we break previous 60 hours highest high & close above with at least 5/10 hourly candles. This is when the local dips will be juicy to buy for up trending coins as they may offer bigger bounce. Down trending low volume shitcoins won’t go far.
Be prepared for rejection of any reversal attempts and retest of lows and even newer lows and further sell off unless we see strength in H1 against previous 60 hours High. The entire market is oversold across all timeframes so some relief rally is expected.
#bitcoin has multiple support around 33900 area so if that holds, we will get some bounce. Will that hold and will we get bigger bounce ? That depends on breaking those highs that I was talking earlier. For now 40500 is resistance for $btc unless we close above that today.
Now find the one that dumped the most making these and the one with best volume and good previous trend.
Stay with strong volume, strong previous trending coins and focus on anything that moves and breaks 60 hours high with strong momentum & volume. Don’t just get married to $ETH or $BTC to make quick bucks.
Last but not the least, be prepared to sell and book profits as most of these reversal attempts will fail in few days and most of the coins will retest / break lows again. Be calm and composed and make the most of the current situation.
Oversold Conditions— Trading Room (@tradingroomapp) January 22, 2022
The entire market is oversold across all major timeframes. That doesn’t mean we will do a V shape recovery
At best we will get 23.6 / 38.2 FIB bounce for some of the major coins and potential 61.8 / 78.6 for trending coins from past few weeks
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