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.
Learn from the experts! Live Trading Course by The Crypto Den starts tonight at 7pm AEST! Register for the Live Trading Sessions
Crypto Market Outlook
We’ve seen a bit of a pullback in price action in the market over the past four days, which isn’t a bad thing. Last week the total crypto market cap reached US$3 trillion for the first time in history and has since pulled back to the US$2.7 trillion mark, which could be seen as a new level of “Support”. It’s currently sitting at US$2.8 trillion.
In last week’s article I mentioned BTC forming a symmetrical triangle which, as a general rule, has a 70% chance of breaking out to the upside. As you’ll see below, BTC did have a bullish break into a new all-time high (ATH) and has since reversed with some bearish price action to what we call a retest zone. What goes up, must come down … and that’s the same for financial markets. Nothing continues to go up without having some downs along the way.
BTC is retesting a new level of support after retracing in the 61.8% golden pocket. This is actually a bullish signal and could simply indicate a new market structure to launch from! We still expect BTC to reach US$78,000 soon.
Last Week’s Performance
Last week I mentioned the coin to watch was MANA (Decentraland) as the bullish momentum was just too good to ignore. It’s seen price action increase 57% and currently retracing. It seems to be bouncing from the 50% fib level at the time of writing and could see the 61.8% fib before a continuation up again. In the TradeRoom there’s been a lot of chatter around these Metaverse coins/tokens, and the sentiment is very bullish!
An amazing trade taken last week by one of our TradeRoom legends – “TypeGuy” – was on CHR (another Metaverse token). I’ve recreated his chart below. You can see see price action retraced to the trend line, then painted a bullish engulfing candle leading to a breakout. TypeGuy trades this on 10x leverage yielding him over 300% ROI. CHR did 76% on spot in only two days! That’s what I call a killer trade! TypeGuy has become an extremely consistent trader in TradeRoom after completing our trading course and shares a massive amount of his charts every week!
This Week’s Trades
As mentioned above, BTC has seen a healthy pullback in price action and retraced back to that golden pocket. Forming a higher low (HL) on the 4H chart and breaking out the new market structure is VERY bullish so far. A big bullish engulfing candle was forming at the time of writing this and if this momentum can continue, we will surely see a break well above US$70,000 this week!
If BTC follows the bullish path, ETH won’t be far behind. Currently in a falling wedge (bullish continuation pattern) and having had a “triple bottom” in that golden pocket, ETH looks really bullish! We would expect to see US$5,000 ETH this week if this plays out well!
Another big top 10 to watch is LTC. Litecoin is usually either late to the party or early, but it’s rarely on time! What I mean by this is that sometimes it leads the way in price action, beating other top 10 coins to the punch, or it gets totally left behind to do its own thing and show up late again.
This time LTC has shown up early. Pushing out of the falling wedge we expect to see a slight and short-lived pullback before continuing up. I’m getting a Fibonacci target of US$350.
It’s important to remember that when trading ALT coins, their price action is heavily dependent on BTC. If BTC takes a bullish path, ALTs will likely follow. If BTC turns bearish, then ALTs will likely dump in price even harder!
If you’d like to become a better trader, you’re invited to join our TradeRoom where we share daily charts and market analysis. In our community we strongly encourage and teach correct risk management strategies to keep our members safe in this new volatile crypto market.
Live Trading Lessons – 6-Week Course
If you’d like to improve your trading, we teach you how to understand and implement all of the trading strategies we use in our 6-week Trading Fundamentals Course.
Other ways to learn:
The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them.
Since then we have taught thousands of members the basics of technical analysis and trading strategies to further progress and perfect their trading abilities.
In the TradeRoom you will be included in a supportive environment which encourages personal growth, education and community support.
It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!
Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.