01.02.22 CryptoCat trading signals and diary

By SirK133 | CryptoCat | 1 Feb 2022

This is the cryptocurrency market outlook, based on cocktail of purely technical indicators that I use. This entails, that bullish or bearish signals given in this series do not portray my sentiment towards any particular project. I try to write this diary for myself, as it helps to maintain trading discipline, but I hope you as my reader can also benefit from it (even if it's just a laugh at my fails). I plan to publish daily, but probably not on Tuesdays, and weekends might have some spotty coverage as well.  And by any means this is no advice, financial or otherwise.

The system consists of: 
- 3 indicators, handpicked from literally hundreds I've tested. Each offers different sensitivity, each of them quite accurate by itself, together meant to produce an highly accurate signal for entry and an early warning for open trades,
- 3 groups of moving averages - a battle-tested combination from forex markets, for the purpose of getting a bigger picture of the market. They indicate how cautiously I will approach signals from indicators,
- H4 timeframe - I would prefer daily, but I write my posts "in the evening" meaning usually around 20:00 UTC (that's still kinda late in my timezone), I need closed candles or I risk that indicator will change value after I post and before closing of the daily candle. I don't need to get rich tomorrow, I prefer trading with less noise. Crypto being volatile as it is on lower timeframes is subject to random pumps and overreactions of the market that easily throw technical indicators off track - that is costly when using leverage.

On H4 all indicators are bullish for a while (since we crossed ~$37600) but they had a nervous breakdown after we had a micro reversal from ~$37400 to ~$36500. Anyway, interesting news is that on D1 yesterday 2 indicators gave bullish signal ~$38400 and third one is close to flipping. And for the first time some info about averages. Since 28.12.21 even the most volatile averages pointed to a downtrend, bu recently (around 00:00 30.01.22) we had a first bullish cross and it is maintained to this moment. Of course, as it is with averages in consolidation, this might be reverted quite fast, but it is a part of the system for a reason. Next resistance from averages seems to be around $42800. This makes me exercise discipline and take a long position, even if I'm not very sure about it - in last 2 days we had quite substantial inflow of BTC to exchanges and that's not such a good sign.  But one day we will exit this consolidation (hopefully to the upside) and if I ignore signals I will miss the one trade that will make up for recent not so good trades. 
LONG position taken.

This is one vigorous mover - yesterday on daily one indicator gave bullish signal, other two flipped today (probably, candle not closed). H4 looks very bullish from ~$2600. Averages also flipped, next resistance around $3200. I won't jump late into this train with leverage, I prefer BTC that has yet to make a bigger move. My biggest bag in a "HODL" portfolio is staked ETH so I'm taking part in this anyway. 
No trades taken.

Now this one is quite sluggish for a change - Still bearish on D1, some bullish signals on H4 but they seem a bit weak. I don't take long position here because I like the fact that BTC flipped indicators on D1, but arguably BNB has a bigger potential of growth. Averages inconclusive.  
No trades taken.

Cardano has very similar story to BNB, only with more pronounced uptrend on H4 timeframe.  
No trades taken.

Chainlink had a nice run up and defended his gains, flipping one indicator bullish on D1 timeframe. Averages managed to make a full cross, but barely. 
No trades taken. 

My short on TRX did not go well - lost 9,5% of the position. I do hope the market priced in the recent macro turmoil and will decide on a direction, at least for near future. From a bit bullish news Taker Buy Sell Ratio has increased substantially and it's 7d moving average was last time this high at the beginning of October 21, also Funding Rate for perpetual swaps is slowly rising. This are not 100% accurate signals, but they do portray some bullish (or "less bearish" since Founding Rate is still negative) sentiment. 

May your coins be like cats - eager to climb and unable to come down,

All tips go to cat treats and catnip :) 
Zen Faucet - dropping once a day, straight to your wallet, without min. withdrawal or transaction fees
Farsite - game with NFTs that hold value, you can read about it HERE
This is not a financial advice – I’m no financial adviser, nor is this a legal advice – although I’m a lawyer. This is no advice at all, seriously, don’t take advice from random cats – the Internet is full of them! DYOR!

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Lawyer, analyst, crypto enthusiast, gamer, poet. I am interested in everything that makes up our world and how it is related.


My cat so often stomps the keyboard while I do my crypto research, I might as well make him a co-host here.

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