The altcoin market as a whole has reached a critical point in the cycle. With all time highs in sight the question of what happens next is an important one.
Bullish scenario -
Accumulation under the Range high and a strong break above with volume, that would put TOTAL2 into price discovery and from there just riding the wave until there is a reason not too. Invalidation on the loss of range high.
Bearish scenario -
Clear rejection off the Range high and a break in bullish structure e.g a lower high and lower low on the 4H/1D time frame. This does not include bullish accumulation under the high as that shows coiling for a breakout instead of a loss of momentum.
Paying close attention to the context of the trading environment is key to the execution of the trade as well. Anecdotally the crypto sphere is euphoric with many calling for astronomical gains, posting their trade gain screenshots etc, google searches for coins like Ethereum have sky rocketed. These are all warning signs for me that at least as of now we are due a correction going off of previous cycles. I am by no means bearish on the larger time frame but coming into range high resistance with the market environment the way that it is this needs to be considered in trade execution.
Bullish scenario -
Accumulation under the Range high and a strong break above with volume, that would put TOTAL2 into price discovery and from there just riding the wave until there is a reason not too. Invalidation on the loss of range high.
Bearish scenario -
Clear rejection off the Range high and a break in bullish structure e.g a lower high and lower low on the 4H/1D time frame. This does not include bullish accumulation under the high as that shows coiling for a breakout instead of a loss of momentum.
Paying close attention to the context of the trading environment is key to the execution of the trade as well. Anecdotally the crypto sphere is euphoric with many calling for astronomical gains, posting their trade gain screenshots etc, google searches for coins like Ethereum have sky rocketed. These are all warning signs for me that at least as of now we are due a correction going off of previous cycles. I am by no means bearish on the larger time frame but coming into range high resistance with the market environment the way that it is this needs to be considered in trade execution.
Note
Rejection at the highs!Where will altcoins find support?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.