Today we had the highest volume hourly bearish candles on BTC for the year, taking the rest of the market with it (except for a few --> (
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Because this is a zero-sum market, short term traders will no doubt still be buying the dip if not already in shorts.
The best short opportunities would have been from tokens that had the highest 24hr price gains, most which have since been erased.
The situation we had both yesterday & today leaves many price efficiencies due to the rapid appreciation or decline of prices; with many orders unable to be filled - which leaves liquidity gaps, which are almost always an opportunity for retracement to those "untouched" levels.
Instinctively you'd think 'I'll long the worst performer, because it'll give the best R:R', but more times than not, this isnt the case.
Buy Tennis balls, not Eggs.
Translation: Tennis balls bounce, eggs stay flat. Buy the coins that bounces/recovers faster than the rest of the market. This inherently tells you the interest and strength of the coin whether it be due to technical or fundamental reasons.
The chart shows the top 3 tennis balls on my watchlists against the altcoin market (note: this does not include coins that withstood the dump well --> $WXT, $FITFI, $MXC.....)
How you go about trading these tennis balls, if you even decide to is up to you. I'd prefer not to make any rash decisions now as I'm already short & allocated into better opportunities; BUT
if I was going to trade this, id wait for a measured pull back on the 15m, keeping in mind volume levels, fibs & also the 7EMA and 21EMA.
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ANOTHER THING TO KEEP IN MIND
SEASONALITY
Check out my analysis below for more insight to this -->
Check out my twitter which is linked for more timely gems, as I will begin posting more about the market on that medium.
Because this is a zero-sum market, short term traders will no doubt still be buying the dip if not already in shorts.
The best short opportunities would have been from tokens that had the highest 24hr price gains, most which have since been erased.
The situation we had both yesterday & today leaves many price efficiencies due to the rapid appreciation or decline of prices; with many orders unable to be filled - which leaves liquidity gaps, which are almost always an opportunity for retracement to those "untouched" levels.
Instinctively you'd think 'I'll long the worst performer, because it'll give the best R:R', but more times than not, this isnt the case.
Buy Tennis balls, not Eggs.
Translation: Tennis balls bounce, eggs stay flat. Buy the coins that bounces/recovers faster than the rest of the market. This inherently tells you the interest and strength of the coin whether it be due to technical or fundamental reasons.
The chart shows the top 3 tennis balls on my watchlists against the altcoin market (note: this does not include coins that withstood the dump well --> $WXT, $FITFI, $MXC.....)
How you go about trading these tennis balls, if you even decide to is up to you. I'd prefer not to make any rash decisions now as I'm already short & allocated into better opportunities; BUT
if I was going to trade this, id wait for a measured pull back on the 15m, keeping in mind volume levels, fibs & also the 7EMA and 21EMA.
----------------------------------------------------------------------------------------------------
ANOTHER THING TO KEEP IN MIND
SEASONALITY
Check out my analysis below for more insight to this -->
Check out my twitter which is linked for more timely gems, as I will begin posting more about the market on that medium.
These analyses are my personal view on the market.
Always assume my investment risk tolerance is higher than yours
I’m here to make money, not hold your hand. Never blindly trust any analysis you see online because it fits your bias (including mine).
Always assume my investment risk tolerance is higher than yours
I’m here to make money, not hold your hand. Never blindly trust any analysis you see online because it fits your bias (including mine).
Already recovered almost 50% of the drop.