CRYPTO MARKET ANALYSIS: LONG WICK FILLED?!

Summary

In this video, the speaker discusses the current state of Bitcoin, Solana, and altcoins, emphasizing key technical levels and trading strategies. They analyze Bitcoin’s recent long week and the significance of the 50% level in filling chart imbalances, predicting upward momentum for Bitcoin. The Bitcoin dominance chart is analyzed, with expectations for a pullback, creating an opportunity for altcoins. Solana is highlighted for its strong performance, with key support and resistance levels outlined. The speaker also provides insights into Ethereum and other altcoins, recommending manual trading strategies based on price action and moving averages.

Takeaways

• 😀 The last video aged well, with predictions proving accurate, and the trader feels blessed by the positive feedback and messages of support from viewers.
• 😀 The trader emphasizes the importance of manual trading, especially when dealing with long weeks in the market. Blindly using stop losses in these situations is not recommended.
• 😀 Long weeks on the chart represent market imbalances and open interest gaps that tend to get filled. The trader highlights how these gaps are important for traders to understand market behavior.
• 😀 A 50% retracement level of a long week is a key area of interest, as price often reacts there. If price doesn't hold at 50%, the trader suggests looking for a move to the 100% level of the week.
• 😀 The trader expects the market imbalance from the long week to be filled, which could signal the continuation of an uptrend. If the imbalance remains unfilled, it could cause price to revert sharply.
• 😀 Bitcoin’s dominance chart shows a range-bound structure, but a break above key resistance signals a possible continuation. However, the trader anticipates a pullback before the dominance moves further up.
• 😀 The trader believes Bitcoin dominance will likely decrease in the near term. He anticipates a decline towards the 52% level before any further upward movement.
• 😀 Solana is one of the coins that the trader is actively watching and has positioned himself in, both in spot and futures. The trader expects a continuation of the uptrend based on price action and structure.
• 😀 A deviation below a previous high in Solana’s price, with support from the daily 50 EMA, indicates a potential entry point for further upside. The trader is monitoring key resistance levels for potential sell opportunities.
• 😀 The trader discusses the importance of consolidations in altcoins such as Ethereum and Manta. These coins are showing similar patterns, with price potentially moving toward key levels like $12 for Ethereum and $1.83 for Manta.
• 😀 Overall, the trader is bullish on Bitcoin, Solana, and select altcoins, but stresses the importance of managing trades carefully and using the 50 EMA as a key indicator for making entry and exit decisions.

Q & A

What is a 'long week' in the context of cryptocurrency trading?

A 'long week' refers to an imbalance in the chart that occurs after a sharp price move. These long weeks create open interest gaps because many orders may not have been triggered. They represent inefficiencies in the market that often need to be filled, and traders anticipate price reactions at these levels, especially around the 50% and 100% retracement levels of the long week.

How can traders trade around the 50% level of a long week?

Traders often place limit orders around the 50% level of a long week, as it is a common point for price reactions. If the price bounces off this level, the trader may hold the position, but if consolidation occurs at the 50% level, it typically signals a drop to the 100% level of the week, suggesting the trader should exit the position manually.

Why is the 50% level of a long week significant for traders?

The 50% level is significant because it represents a key zone where price reactions often occur, as many traders expect the market to fill the gap created by the long week. If the price holds at this level, it could signal a continuation of the trend, while failure to hold suggests a deeper pullback.

What is the importance of consolidations at the 50% level in long week trading?

Consolidation at the 50% level often indicates that the price will not hold and is likely to drop to the 100% level of the long week. Traders look for these signs to adjust their positions or exit trades to avoid unnecessary losses.

What is the speaker's outlook for Bitcoin's price in the near future?

The speaker believes Bitcoin is on a bullish path after filling the imbalance created by the long week. With the price holding above key support levels, including the trend line and 50 EMA, the expectation is that Bitcoin will continue its upward trajectory.

How does Bitcoin dominance impact altcoins, according to the video?

Bitcoin dominance impacts altcoins because when Bitcoin dominance decreases, altcoins typically outperform. The speaker anticipates that Bitcoin dominance will continue to fall, which would allow altcoins to perform better in the coming weeks or months.

What does the speaker think about the current state of Bitcoin dominance?

The speaker expects Bitcoin dominance to decrease further, as they believe the market has already filled all the imbalances at the higher levels. With Bitcoin dominance breaking certain resistance levels, the speaker predicts a pullback towards 52%, which would likely benefit altcoins.

What is the strategy for trading Solana in the current market?

For Solana, the speaker suggests using the 50 EMA as a key support level. They believe that after a deviation below the previous high, Solana's price could continue upwards. The speaker has entered positions both in spot and futures, with targets around $300. They recommend paying attention to retracements and the 50 EMA for potential entry points.

How does the speaker manage positions in altcoins like TIA and Manta?

The speaker manages positions in altcoins by looking for key pivot levels and using the daily 50 EMA as a support indicator. For TIA, the speaker targets a price of $12, and for Manta, they target $1.83. The strategy involves adding to positions during pullbacks and validating trades with consolidation or movement above key levels.

What does the speaker recommend for traders considering new entries in the market?

The speaker recommends paying attention to key levels such as the 50 EMA for entry signals. Traders should focus on price action and avoid blindly placing stop losses. The speaker suggests manually adjusting positions based on how the price behaves around these levels, especially in volatile conditions such as long weeks.