Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
Last week I touched on the US$600 Billion drop in TOTAL crypto market cap. I warned that we could see some more selling pressure but there was no reason to stress or start panic selling. You can see below that the TOTAL crypto cap has indeed pullback further to retest its current uptrend. So far showing a bullish test with a long wick to the downside and a strong bullish engulfing candle on the daily timeframe.
With the projection of the TOTAL heading down in value I suggested BTC will follow this formation and see further bearish price action. My target being US$51,000 We haven’t hit that price YET. So far BTC is showing some signs of strength and the bottom of this local downtrend MIGHT be in so it would serve well to expect a bounce here and plan your trades accordingly.
That being said, we’re not out of the woods yet. While ever BTC is trending below that local downtrend line and forming lower lows/lower highs (bearish market structure) we could see BTC hit that suggested area of support at US$51,500.
What’s interesting about the US$51,500 level is the perfect storm forming. There are so many key identifiers converging in that 1 area. We have:
- The 61.8% Fibonacci retrace level
- Daily 200 Exponential Moving Average(EMA)
- Daily level of support
- Daily uptrend
- Daily Higher Low (excellent market structure)
- All of which plays well into Elliot Wave Theory of market cycles
Its almost the perfect trade setup and something we discussed in last Thursdays market scan in the TradeRoom. You can catch a sneak peak on our YouTube channel.
Last Week’s Performance
SAND/USDT
Last week in the TradeRoom we were watching a lot of these Metaverse coins and SAND did not disappoint. I showed a bullflag forming on the 4H chart and was personally hoping to see a test of previous support and uptrend but SAND didn’t want to wait. Breakout from the bullflag boasted a 120% push to the upside!
LRC/USDT
Like SAND, LRC didn’t want to wait for another test on support. Breaking out of falling wedge identified by one of our team leaders Pete last week LRC sported a 60% bullish push and currently seems to be forming a new bullish market structure.
GALA/USDT
Trade of the week has to go to TCD team leader Pete for his massive GALA trade! With 10x leverage (considered a safe leverage for experienced traders) Pete’s profit is currently over 2000% while a spot trade would give a massive 262% from entry. Pete is a pattern trader and often enters trades based off certain chart patterns. In this case he seen a symmetrical triangle bullish continuation pattern.
This Week’s Trades
ADA/USDT
ADA has been trending down since the start of September and really starting come into some key levels here. This trade might play out this week or even over the next two weeks but its certainly worth mentioning.
You can see in the chart below ADA has currently found some bullish price action at the US$1.45 level of support. We could see a decent 30% push here which would be great and MAYBE even a breakout of the downtrend. However, I’m looking a little further ahead. If ADA rejected off the down trend and pushed further below, the next, and likely last, level of support before revisiting US$0.30 again is at the US$1 level.
This is a major level of both tested and psychological zone of support and I’d expect to see some big money flow happen around here because failing to rally at US$1 would absolutely nuke ADA price action.
THETA/USDT
Another coin to keep an eye on is THETA. This is such a good coin to trade and will require a bit of patience to find the right entry.
After a period of consolidation I’m looking to enter LONG/BUY at the RETEST of a breakout. This will of course depend highly on what BTC does this week and may stay in a consolidation zone a little longer. Nevertheless its one to add to your watch-list.
OMG/USDT
OMG could be coming into a key area of daily support. Likely a raly point if BTC can behave a little. If OMG can push from US$7 and reclaim previous high of US$17 we’ll see 150% growth. Another one to add to the watch list.
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