Last night I was watching this chart and was going to post it, but hesitated as it was too early and was going to bed. (I did post it in response to @lapoochi's question pertaining to what indicators I use, on the French Fries and Gravy post for those that wish to verify) so this is not hindsight by any means. I noticed 2 things that clearly stood out. $5600 which had been a solid support line, all of a sudden was turned to resistance. Also the indicator was having trouble maintaining above 60.Throw all the EW and Fibb to the sidelines, this is very basic trend analysis. This is why I have emphasized use EW and Fibb for a guidance but the trend is the most important, and many "experienced" traders fell into this trap as well. The market trend was telling us no new money is flowing in, as we mentioned several times, this was clearly a market rotation why make risky trades?
So where are we? Well we are sitting on a good stack of cash waiting PATIENTLY for some good trades or to add to our long term investments as we have been for over a week now. This is where patience pays off and as good coins get crushed we will be waiting to pick them up cheap Buffet Style. Simply because we were prepared and did not swing trade here!
From the chart on BTC you can see $4800-$5000 is our target range for a rebound, but this does not mean one will not happen as $5200 is the 0.382 level. So be careful shorting here as we missed the breakout from $5451. You can scalp trader here but if you are not seasoned it could be painful. Your best off watching the correction unfold and sitting on cash looking for deals. The final test will be if BTC' retests the $5445 level. If it breaks this level then we could continue higher so BE CAREFUL. But I expect it either to fall short or bounce off and head down towards the $4800-$5000 level which both will be met with great resistance. Failure to hold the $4800 level then the extended top we posted a few days ago, is in play for $3000ish.
Nothing chart wise has changed since we posted the French Fries and Gravy post, or Fork in the Road, so for more in-depth look you can refer to that article as nothing has changed.
CASH IS KING IN MARKET CORRECTIONS!
In the next few days what are they going to do except to twiddling their thumb. Maybe some drama in XRP and Neo is coming.
If this was intel trading at $58 and it fell to $54 that is not very much and percentage wise is comparible to $5800 to $5400. But buying at $5800 for $600 (which I doubt gold holds) is not wise in my opinion. I saw on one exchange it was trading at around 3 cents. https://coinmarketcap.com/currencies/btcgold/#markets And BT2 trading around $600. So if there is any issues with BT2 then a correction could be huge, which is the reason I'm staying away from trading long here even though $6100ish is a target price.
Risk to reward would be buying here for $400 profit with a correction of $1200 possible. Not sure that is a good risk to reward, actually it's a recipe for disaster! Hence my bearish stance! All about risk to reward in the mid term not long term holdings which I still hold! (on a private wallet of course)
I will look forward to your analysis of DASH.
A have a question regarding market cap and trade volume -> https://coinmarketcap.com/charts/
What do you think about it? (last 3 months) Does this chart can tell as something?
Many people think, that after BTC fork, BTC will fall and all money will flow to alts so they catch up with BTC (whatever it means..)
and we see new ATH... I'm not sure about this.
Need a good correction to bring new money in and to forge higher towards 10k!
In this scenario money from BTC should flow into alts. The question is if alts will go higher than they were before "the dip" caused by BTC, before BTC broke 4.9k resistance or will they back where they before. I have a strange feeling, that traded volume is much smaller that it was after September dip and there's less money in the market or maybe many people gone long? It seems that there was some damage done by China's FUD and its not even the matter of chinese markets, because volume dropped instantly, way before their official closing. Maybe I\m just imagine things...