The State of the Market
With Bitcoin quietly plodding along for the past few days making lower lows and lower highs with the previous $59,000 fake out excluded, what next for the price? A strong resistance level sits around $57500 level which will need to be broken to see any parabola. You can observe on a 4 hourly candle, Bitcoin has been trying to break this resistance multiple times trading down over the short term.
The danger of a further breakdown or loss in key support levels is present, however, with any luck, we will break up and above and enter a price discovery mode, which will be very exciting indeed! We had already broken out of a falling wedge on a 12 hourly time frame which we are currently testing to confirm support. I am confident of big daily candles coming, and perhaps some bullish news such as a Spot Bitcoin ETF in the USA, much like the one announced by Fidelity yesterday, this could be the start of some further growth in institutional investment and even drive more retail to the Crypto space.
Relative Strength Index (RSI) indicator shows us on the monthly charts encouraging indications that BTC is was fast approaching the oversold territory and is now on the turn. RSI can be a very useful indicator, however, it's important to select an appropriate date range. For example, the monthly RSI in theory would be better if you are a long term HODLer and not a trader. I do not trade daily, I look for good times to buy, and then aim to HODL a coin for at least 3 months, but as long 10 years where I can be in a position to take profits along the way and reduce or better remove exposure. By using the RSI on the monthly time frame, you can also see when you are approaching the local market cycle tops. Historically, these have occurred shortly following a long term RSI of greater than 90. The last time we saw current RSI's in this level was at the tail end of last year before we saw previous all-time highs on the way 'up'.
A bit more of an RSI explanation for you: Relative Strength is a gauge of market sentiment and can be used to infer what stage a market is in, you can use it to sell before Euphoria ends and pick up assets when on discount during the market surrender phase. Technically an RSI value great than 70 is overbought and below 30 is oversold. Outside of these ranges, you may want to get in a position to have your assets liquid in anticipation to trade them. For example, avoid locking up or staking your coins if RSI is greater than 70 since you might want to take profits, and conversely move fiat onto exchanges should RSI drop below 30.
TIP: If you are using the Binance, Kucoin Coinbase Pro Apps, you can set yourself up alerts so that you don't miss these opportunities for profits and accumulation and avoid losses.
My plan: You will almost certainly be selling BTC if RSI is greater than 90 on a monthly timeframe.
Polygon MATIC Pumps and price prediction
I entered my position in Polygon ($MATIC) in early 2021 before the March pump where MATIC was nearly 3x'd. I took a punt at the time and did not research projects as intently as I do these days, however since seeing the returns I did and decided to HODL as believed there is and was more potential. Elliot wave theory indicates a final leg should be the largest, which could give us a $10 MATIC in the months to come based on this. A breakout from the current wedge gives a target of around $3.90. MATIC is an ETH layer 2 scaling solution and provides interoperability between blockchains, a great utility that should do well alongside ETH in the long term.
Thanks for reading my update, and any exciting projects, I plan to share with you any low cap picks I invest in with buy alert blogs right here on Publish0x and on Reddit. None of the above is financial advice, you should always do your due diligence.
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