Look at that deadly chop. You wouldn’t want to be trading that. Or would you? Understand that markets use liquidity to move. Market makers buy into liquidity of sellers below old lows and vice versa. Understanding how they accumulate (or distribute) in these range bounds environments may help you turn a nickel into a dime. So let’s see, we haven’t taken out $28,850, and personally I think we break out above this range. There’ll be too much selling below it, but first I think we’ll see the market turn more green. As you can see there is much more liquidity above the market place than below, with funding rates negative and retail bearish I think we’re in for some short squeezes. First I expect mid-range to be hit with the liquidity around it. My entry trigger is $31,100 being hit, with $34,600 as my main target and if hit the remainder of my position is gunning for 37k± with once my main target is hit, my SL moved to break-even. Again it’s not a massive R return but the probability is high in my opinion.
Now assuming that the market does as I outlined before here, I expect we’ll see liquidity above market price ran and then I’m looking for confirmation of reversals targeting $28,850. After that, we’ll see when we get there.
Ethereum isn’t very different from Bitcoin in my opinion. The setup here is very similar. Long at $1,850, hard stop-loss at $1,700, $2,250 as primary target into mid-range and if I can get it $2,450 as secondary target, with again, when primary target is hit stop-loss to break-even. The underlying premise is the same as Bitcoin, with the $1,700 level not being taken out yet and signs of a reversal showing.
I don’t personally feel comfortable taking longs on the Top 10 at this very moment (excluding Ethereum and Bitcoin). For alts such as Binance Coin I’d be looking for shorts in the future. With short squeeze sweeps I’d look to sell on the confirmation. An example of BNB is given, but for many alts a similar scenario applies.
Looking at the daily, my sloppy drawing can give you an idea of what I’m looking for across the board. Confirmation is my trigger, I want to see underlying assets (BTC, ETH) show weakness in conjunction with my trigger to validate my entry. Sweep of high > Failure back below > Complacency is my entry trigger. Targeting the low that was formed yesterday and the June and Quarterly low. To me, this is what range-bound trading looks like. So I’ll be setting alerts for the high sweeps to watch the reactions.
That was it for this week. Hope my analysis was of some help to you, feedback is much appreciated.