This is the trading situation that we have been waiting for. But I’m still putting out a beware for the bitcoin relief rally that we are seeing at this present time now. There is an upside for cryptocurrencies, but it does look like the rally is just wearing out in the short term. So, let’s take a look at that – where this could drop to what we could expect next over the coming 48 to 72 hours and just where these cryptos could top out and the signals to look for if we are trading these cryptos during the bitcoin bear market.
Now if you are trading, make sure you have experience and a plan and, of course, use stops. We’re looking at trades plus what’s going on with bitcoin and cryptocurrencies some topping out levels. So, this is all going to play a hand in hand even if you’re just a spot trader and want to know what’s going on in the market. Before the news tells us to remember the charts don’t lie. The charts always tell us what’s happening in advance provided. We continue to improve how we read the charts, so with that said.
If you want to be aware of all crypto movements, download Jet-Bot copy trading platform! Earn from 200% up to 2,000% APY! Save your money and create passive income!
Let’s take a look at bitcoin and what I’m seeing in the charts looking at the price continuing to move up as expected. But now I’m putting a little beware warning on this because it’s just not moving up as fast and as hard to throw a joke in there. As I would have liked looking at these two arrows down here, we can see the low this is a swing low. If I throw in our TI again, you can see that this will be a swing low. This is also a swing low the problem with these. I see that there’s just not enough volume coming in on the four-hour chart. Now if we look at the previous tops the swing tops here, you can see this one where it says two because it was two days up look at the volume that came in on the top that pushed the market down look at the volume that came in on this top right here. The one that says zero on top you can see, the volume’s just a lot higher than everything that’s happened here. The price range is just starting to contract meaning that we’re just not getting as big of a move to the upside as we have previously seen.
So, these are all sort of starting to shift to a bit of a rollover note. However, this is a four-hour chart. This is a very short time frame and, essentially, it’s kind of the time frame that people who watch the news look at. They’re just pretty much looking at short-term stuff, whenever you’re looking at the news the good sign to this is for now. At least, you can see this yellow line here. If I take this off just to give us a cleaner looking chart, we’re above the yellow line. That’s the previous old all-time high, so it’s nice to see that we are at least holding above that for now. So, the alternative or the scenarios that I see here. If we are to drop test our 50 possibly even lower somewhere into this zone here which is approximately 18 700 to about. If I get my line here 19-19200. I still see that as bullish provided we test it and come back above that level and that’s what I think has the possibility now of happening because of the volume. Just not really pushing us too far just yet. So, hopefully, we get that volume to push us through sooner rather than later to above this price here because that is the current uptrend resistance level of 21700. With all this in mind, then, this leans over to our trading opportunities and somewhere in the title I’ve got something about 80 percent.
We looked at this in the previous days specifically at a total three. So all of the cryptocurrency market caps, minus Bitcoin, and Ethereum we want to get an idea of some of the resistance levels for our altcoin trades now. What is happening in alt coins what is the fundamental news? What’s going on? Who’s doing some developments doesn’t matter? It doesn’t matter because we want to see where the price will go and what some of the resistance levels are for the overall markets. I think if we start to hit some of these levels, then, we should start to look to take profits on any old coin trades or at least put some stops in a little bit higher and get those stops a little bit tighter because we do have some resistance levels that are quite close now. It’s going to be up to your own plans where you think that the market can go. I’ve got a couple of options here the first option is a very conservative level that’s only 24 from the low which would mean from our current price. It’s not much in it there’s only about seven or eight percent the next level. I have is two up here and not this one here. So, I’m looking at two because we can see that the market has found support in the past.
This bar in May was really where the market broke down from that level. So, I don’t really expect it to go much above about 580 odd billion. That’s also a second 50 level, so the fact that we’re getting price clusters coming in together with two significant levels is really important. You can see I’ve got this level from the low to the high and you can see the numbers are just slapping over each other. So, it is at about 580 billion and that’s the major 50 level as well. So, the price range from the low to number two is about 80 percent. If we did start to break through these levels here (number one, number three) and then get closer somewhere in this zone up to about 80 percent, I would be looking to tighten the stops on any profits. I made it across the board and I’ll look at a few cryptos in just a moment. The reason is that we could see a reversal from that point and then the market, just come back and test some of these lower prices.
So, I wouldn’t want to lose all those profits, especially in a bear market because the upside is usually smaller than what we see in a bull market now. I’ve got number three as well because you can look back here and we did have some support with the previous crash. This is the total cryptocurrency market cap and this is a crash where the bodies of the candles held up on a macro chart, on a weekly chart here as well. We’ve got the lows and the market did hold up on that crash week in May where we got that first low. Then we had the market come back up and test that level so I think there is some sort of significance there at around that 470 480 billion. If we take a measure from the bottom that gives us about 48 somewhere around that 45 to 50 percent. So, that’s not too bad. It’s not something great, but, at least, it gives us an idea of where the market might find resistance on any cryptos that we’re trading and then maybe come back.
This article is a transcription of a video made by Jasson Pizzino
Original video: https://youtu.be/lSfNsLy9g1k