The Wolf Den #23 - Chart Requests And Bitcoin
Bitcoin
The daily chart shows 2 confirmed SFPs (swing failure patterns) and one in the making. That means 3 wicks below a key previous swing low. What does this mean? It means that there is a ton of liquidity and buying interest below that line. It also can indicate that price was purposely pushed down here again yesterday to engineer that liquidity and fill a whale's bids. That's right - big players often sell aggressively in order to find liquidity for their longs.
Zooming into the 4 hour, we can see that, even on lower time frames, candles have not closed below that line. We have 4 small dojis in a row, indicating indecision and a pause in the action. As long as price remains above that area, I think we can go back up.
Most importantly for me, price is showing bullish divergence with RSI on every time frame below the 12 hour. It has confirmed on a few and is still awaiting a definitive move up on RSI on some. Any real movement up should confirm. This div indicates that buyers are still interested even with price dropping.
Volume has dropped since the big move down as well. On a renewed bear trend, we would expect to see volume RISING while price drops.
Bottom line, I see no reason to panic for now. It's an interesting spot and price could go either way, but I remain bullish for the moment.
Chart Requests
ACT/BTC
Not much to like on this chart at the moment. Price is moving in the bottom half of a trading range after being rejected at the equilibrium (dashed midline). It's below descending blue resistance and now trading below both the 21 and 50 EMAs on the daily. There's no reason that I can see to trade this at the moment. A break of that blue descending line or at least above the center of the range would be encouraging. You could also look for a bounce from the bottom of the range, but that is dangerous.
ALGO/BTC
I share this every week and it still looks the same. Price retraced the big move from bottom to local top all of the way to the 78.6% fib and is now struggling with the 23.6% fib, which lines up with another obvious horizontal resistance. Price also dropped back down to test the 61.8% fib and did so perfectly. This remains bullish for now and has moved better than most coins on this Bitcoin correction. For the moment, strong resistance - but resistance usually breaks eventually. I would not be surprised to see this go up before I even post this update today.
ALGO/USDT
Like the BTC pair, this looks bullish. Price was trading in a range at the bottom (blue) and broke above. It has retested this area successfully as support, so there's no technical reason for price to return to that area. Price is also trading above horizontal resistance turned support. Key areas are marked - this should continue to rise if the market allows it.
ARABICA COFFEE FUTURES (ICF1!)
This looks interesting. It has failed at resistance on the weekly a few times, and seems to be testing it once again. Price is also struggling with the 21 EMA on the weekly time frame. Regardless, this pattern should break to the upside and test the top at some point in the future - that could take years. If you zoom in, there's a bit of an inverse head and shoulders as well.
CARA (CARA THERAPEUTICS)
This has been ranging for years. Price is currently at a key level - the EQ (equilibrium, center dashed line) and has been rejected this week. Price is also sandwiched between 3 key EMAs. It is above the 200 and below the 21 and 50s, which just crossed bearishly a few weeks ago. Ideally, I would like to see this in the top half of the range and above all of the EMAs. Otherwise, this could take a trip to the range bottom.
CGC (CANOPY GROWTH COMPANY)
This looks promising. The weekly chart shows that price has broken it's immediate downtrend and retested descending resistance as support. Price is trading in the top half of the local range, and also bounced off of the EQ (dashed center line) as support. This should be taking a trip to the top of the range at the least. A break above the range should target the area near the top of the descending line.
CRON
I have charted this a few times for members and nothing has changed. The daily on the left shows that price was predictably rejected at the main pivot. A break above that line should target the R1. The wider view on the weekly is shown on the right. Still need to breaks that descending resistance before the downtrend is broken.
CRPT/BTC
Interesting spot here. Clearly trending down, not much to like in the price action at all. Also below the 21 EMA which seems to be holding price down. That said, the most key support on the daily chart is just below price. That ascending line is a decent place for a knife catch if you are looking for decent risk vs reward. It could easily break and go through, but at least you would have a tight stop.
DAG/BTC
I look at this absurd chart for someone every week and there are no changes. Impossible to have a good look at a coin like this with those kind of wicks all over the chart. Price is still ranging between levels of support and resistance. For the moment it is above both the 50 and 200 EMAs, which is more bullish than bearish. That said, today's candle has started off poorly.
EAF (GRAFTECH INTERNATIONAL)
Price just successfully (for now) tested the all time low and formed a bullish SFP (Swing Failure Pattern) with a wick below that line and close above. I really like that. Clearly there are buyers in that area. The risk reward here is great, with a stop somewhere below the most recent all time low. As long as candles continue to close above that black line, we should see price rise. I would personally target that descending blue line and see what happens if price gets there to decide the next move. I would be out of this completely with any daily candle close below that line.
GAS/BTC
Price was ranging and forming a bottom and break above the range a few days ago. Price has presently reentered the top of the range, but has NOT closed a daily candle back in it today. I would not want to see that. If price can hold the top of the range as support today, then I really like this setup and think it should target the black line above. Watch the next few daily closes.
HUT 8 MINING
Crazy volatility. At the moment, volume is rising and price is dumping - that means that the present massive sell off is real and entering a position would be very risky. This has effectively been in a downtrend since inception, so I don't see any reason to mess with it for the moment. The blue areas are the key levels that I can discern from the limited price action.
LEO/USD
LEO has clearly broken it's downtrend against USD after dropping consistently since it was introduced. The key immediate levels are marked. Crazy candle today - dropped right to support and was bought up quickly. This indicates there is real demand, which is bullish. A break above the resistance just above price should send price further up. Local targets would be the top black line and the 200 EMA (red descending line).
LTC/USD
If you follow me, then you know that I have been bullish on large caps vs. USD for months, which has paid off. That said. I have taken a lot of profit on these positions. LTC is at an interesting spot here. It is testing support of a steep ascending channel. Bulls really want to see price closing back in that channel. Otherwise, they will be looking for entries at each of the white lines below. A drop would be healthy here, honestly. This steep uptrend needs some retracement.
MATIC/BTC
I am still in MATIC, don't see any reason to panic. I have adjusted my view a bit, it looks like an ascending triangle at the moment, which should break to the upside assuming this present candle actually closes like this. I really like it better above 206, which it is flirting with now. Still, the overall descending wedge is bullish.
MRVL (MARVELL TECHNOLOGY GROUP)
This is in a decent spot. I would like to see price above that black line. Price is presently finding support on the 50 EMA, which is a good sign. A break above the 21 EMA should find this continuing upwards. As long as price does not break down from the ascending channel, I would remain bullish on this.
NEO/BTC
I am in this trade and nothing has changed for me. Looks super bullish, even after the Bitcoin drop. Huge inverse head and shoulders, price has retested it as support. There may still be some more retracement, but I like this for a longer swing trade.
PYPL (PAYPAL)
Crazy bullish. Made an all time high last week and has tested the previous all time high as support. Flying above EMAs, all of which are pointing up. Ride it until the wheels fall off, in my opinion.
ROKU
This confounds me, honestly. Great earnings, price gapped up huge and then dumped and has not looked back. Irrational and ridiculous. That said, price is riding support (down) from the wedge, so it would be expected that it will pop back up off of it. Price has also fallen below the EQ of the blue channel and tested it as resistance. I want to see this back above $131 or so. I am still in.
RVN/BTC
Zooming out once again, because I have looked at this chart 100 times and it's still the same. Sure, there's a lot of money to be made trading down here, but this looks bearish to me anywhere below that red line long term. I personally have 0 interest in trading this anywhere beneath that. For now, if you are bullish I would place some stink bids down the in the blue box again. It could, of course, just go back up from here.
SOLVE/BTC
SOLVE had a nice pump and then predictable dump. You can see that price tapped the top of the range with long ugly wicks on multiple days. Lots of selling up there. Then it dumped to the EQ of the channel and broke down. Not great. That said, price is at the local support now, so if it holds we can expect price to continue up. A close below that ascending line should target the bottom of the range.
SQ (SQUARE)
I actually bought this myself yesterday at $82.50 when price broke through the top of the range on the daily. I am targeting the all time high and then hopefully price discovery. This look really good right now, ready for another leg up.
VRA/BTC
VRA has been moving really well and continues to rise today. It is coming in to a key area of resistance at 1211. A break of that should target the top of the descending blue line and the black line above that. Price is trading above the 21 EMA which is pushing up. Bullish all around, but don't surprised to see some retracement if it hits that black line and gets rejected.
XRP/BTC
Classic XRP disappointment, underperforming other majors. I luckily took profit near the top of this move coming into resistance at 3370. Has been nothing but dump city since, and it broke they key area of support and resistance (grey box). I would like to see price trading back above that box. That said daily demand is shown as the blue parallel channel, so this would be a decent place for a bounce. This coin is really annoying, honestly. It feels like Ripple dumps on their own holders every time there's some movement.
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.