Weekend Blues... | Trading Room

Dear Friends,

After Wednesday’s sharp rally, Bitcoin is cooling down in a small range. Apart from Bitcoin most other majors are also trending sideways except FTM which is trying to charter new territories. Lets check some scenarios for Bitcoin for coming days

The Bitcoin Question - What first 59000 or 49000?

While the undertone remains bullish for Bitcoin, there is still that probability for Bitcoin to test some lower areas before breaking 55555 level. We wont bother much until the upper trendline holds. If that one breaks, we may look for lower zones all the way up to 47000-49000 area.

The upside breakout Scenario

The Alternate scenario is Breakout above 55555, which takes us to 59000 area as next Target. We have some resistance from previous consolidation in that area, followed by an All time High zone 63500-65000. Interestingly current area can also be defined as 78.6% fib level for the entire down move.

What are the other levels to watch ?

I am keenly watching previous Highs around 52669 and 49548 as probable support for this move. Looking at the price action for last 3 days I am more inclined to wait for lower zones to load my Bitcoin bags. However, I am also ready to enter if Bitcoin decides to break 55555 conclusively

Now lets talk about a scenario where you as an investor has no exposure to Bitcoin. Lets say you bought some Cryptocurrencies like SOL, Ethereum, FTM but you have no position in Bitcoin.

How does Bitcoin Price action affect your investment in other crypto ? And why should you bother about Bitcoin price action and its potential move, even if you have zero position in Bitcoin? Lets try to answer this question

Bitcoin is the bell weather currency for crypto. The Sentiment for Bitcoin directly affects overall mood in the market. There are times when Alt coins decouple from Bitcoin price action and move independent of Bitcoin’s trend. Currently most Major Cryptocurrencies are moving in tandem with Bitcoin. Once we get the decoupling, its ok to ignore Bitcoin’s price action.

Coins for Mid Term Swing

FTM, OMG, SHIB

FANTOM looks like a ready to eat instant noodle. Any dips below $2 will be grabbed by Swing Traders. While we more than doubled from recent lows, it looks like there us still a lot of juice left in the move

On the other hand OMG is attempting to consolidate in 10-13 area for a potentially explosive move. However any dump below 10 will break the trend, so keep an eye on that area

SHIB is doing its pyro techniques for almost the entire week now. The trend seems to be tiring for now. We are entering the bearish consolidation and distribution phase. Look for any dump in 0.00001400-0.00001600 area for one more move higher