Hi everyone,
We see once again a dump in BTC and altcoins follow nicely with even bigger drops. A lot of talk about the coronavirus and the global economy. Chainlink and Tezos (two powerhouses) are finally going down as well !
I believe that the coronavirus is an intelligent way for the smart money to dump to instill fear and shake out the weak hands. This is dump number 4 of significance and every time weak hands get shaken out. In the meantime you can see the indicator OBV (On balance volume) showing a steady line, which means the smart money is actually buying in and holding on parts as well ! We will most likely see more dumps coming to try and shake as much people out as possible. Do not be surprised if we see BTC go down to 9200 – 8800/8900 – 8500 - 8000 and maybe even more !
In this post I will show some charts of Bitcoin and ICON. These are just a couple of the cryptocurrencies I will be looking for to see if it is interesting to buy the dip ! There are more altcoins I am looking for, but I will post another article soon about these ones (spoiler alert ! Chainlink and Tezos)
Bitcoin (BTC)
Bitcoin is interesting to chart because altcoins will follow BTC most of the time. Bitcoin drops 5%, altcoins often dip towards 10%. Try to calculate how much more Bitcoin can drop and altcoins will often double that figure. Here you will see a daily chart of BTC :
I hope you are able to zoom-in on the chart. A lot of lines and colors on the chart, but I like it this way. The blue lines are support and resistance zones and fib retracement as well. Around the 9200$ level is the first level I am watching for now. Furthermore I would be looking at a test of the 200-day moving average and this is around 8820$ right now. The CME gap is around 8500/8600$ and this will also be possible for Bitcoin to reach. The 8000$ level is right around the 0,618 fib and Bitcoin likes to hit those often ! You see that there are quite some levels and all of them will still create a higher low on the high time frames like the weekly that are more important. In the meantime altcoins will drop as well (more than BTC) and make for interesting buys (buy the dip).
By the way I did not put the indicator OBV (smart money/on balance volume), but even with BTC dropping today and yesterday, the indicator is still strong and holding, which means the smart money is already accumulating ! Do not sell your BTC, do not be the weak hand that gets shaken out !
ICON (ICX)
I will first start to talk a little bit about ICON and why I believe it still has potential. You can skip this if you want and go straight to the charts further down.
A lot of people have given up on ICON and this South Korean “Ethereum” went down as low as 0,10 cents while their all-time high was around 12$ ! What a fall and understandable that people give up on it. I did so too until recently where I found some interesting news about a new project called “MyID”. ICON tries to implement a decentralized ID ecosystem and has already launched with 39 partners ! This gives it a real use-case and they have been on the South Korean television with this project and that is huge as well (link is below in the sources). South Korea is one of the bigger countries when it comes to crypto.
You can read more on MyID by going to the following website :
Another interesting feature for ICON is staking. Like Tezos you can stake ICON with your ledger if you are interested. Here I will show you a link that will explain perfectly how it works :
I have tested it with a small amount of ICON and it is easy to set up and I have already claimed my first staking rewards !
Here you will find the daily chart of ICON compared to the USD :
I believe ICON is in an ABC correction for now and we should see lower prices on it. Yesterday it dropped nicely and today it continues rather strongly so I think we will see prices move further down the line for a while. The indicator at the bottom is OBV and I am impressed by how resilient it is ! This means for me that people are actually willing to hold on to it and accumulate. The red arrow shows OBV moving slightly upwards while price is at a lower point. This is a good sign. However I believe that OBV will break to the downside (not until the lows where it started its upwards movement) and price will fall further as well. The 0,30 cent area is an important support area and it lines up with the 0,618 fib retracement level as well. This one can give a bounce, but ultimately I think we will head further down towards the 0,22$ level which is the 0,786 fib retracement. Hopefully this will be the low we will see before we renew our up-rise. I have put the end of the c-correction at 0,22$. If you believe in this altcoin and want to invest in it for long term I recommend putting orders at around 0,30$, 0,25$ and 0,22$. OBV tells me this massive pump we had was not a fake pump. Furthermore you can stake this coin which will give you some free ICX !
In conclusion I still see buying the dip opportunities for BTC and ICON is one crypto to look out for as well ! The chart is not looking bad at all for BTC and ICON and lower prices in a bull market are meant to be bought, not sold. By the way on BitMex there are still quite some longs on Bitcoin, so do not be surprised if price is going to move down further since they like to screw with people and liquidate them. As promised in my next post I will talk about Chainlink and Tezos (where to place some buy orders). You can slowly start to look at them and start to place buys at several price levels to do a dollar cost average. Do not go all-in on one price level. Pick several of them.
I am not a financial adviser and this is not financial advice. Please do your own research and make your own decisions !
