Concerning The King & Queen
When it comes to BTC I am not that concerned about the current drop. A drop below $8500 would have me concerned but this current price action is actually expected by any trader worth his or her salt. I don't say this in light of the CME gap but rather by what the charts are saying. Recently we broke a multi year downtrend, signalling a breakout, however to correctly trade a breakout you want to see the price come back down to the breakout and retest that zone.
If you view the above chart, it is clear that the price action is returning to retest and confirm this breakout. I have buys in at $9500 and $8600 respectively. I am expecting this breakout to be confirmed due to the fact that we are in a bull market and so a bullish bias makes logical sense.
If the price overshoots, I expect to catch a wick at the $8600 level. In order to trade this long-term breakout, you need the price to drop in order to confirm the breakout. A drop to the $9500 zone and up again would be a textbook confirmation.
When it comes to ETH, the price action is a bit too volatile for my liking and is not showing nearly as much strength as BTC. I am indecisive regarding ETH because that is what the market is as well. To position myself comfortably, I have placed buys at $260 and lower. It is unlikely that ETH reaches these levels but if ETH bounces with BTC on a confirmation of the breakout I will enter on that providing the charts are confirming it.
I am choosing to play it relatively safe here. Traditional markets are a bit messy at the moment and one cannot rule out an unexpected crash.
What About Alts?
Regarding alts, I am not opening any new positions as BTC has broken a downtrend in the BTC dominance, signalling BTC strength against the alts. If this proves to be a fakeout and BTC dominance collapses once again, I will enter new alt positions.
I will obviously be looking for some good entry points on existing medium-term altcoin positions as well. Alts have responded very badly to a rather insignificant drop in the BTC price and that is a bit concerning.
A $400 to $500 drop for BTC is not that much at all and to see top tier alts lose up to 13% on such a small drop is a red light for me.
Experienced traders looking to trade alts, as well as gold with leverage, should check out Phemex. Traders can enjoy zero fees by upgrading to Premium, which costs only 19c per day. This will be quite attractive to larger and experienced traders.
As always this is not investment advice but merely my interpretation of the markets. Do your own research and ensure confidence in your investment decisions.
Nice 😍