What's up guys? Did you have a good day? I know I did!
Here is an in-depth analysis of the top 4 cryptocurrencies by popular demand, and also a look at what could possibly happen tomorrow.
Remember that this isn't finance advice, and you shouldn't make important decisions off of what I write here.
With that said, let's get started.
Here is a chart to aid with visualisation:
After Bitcoin made a new high for the year at $10500 a few days ago, the correction has been deep. Bitcoin has tried to rebound multiple times today, but bears have resisted any such attempts. This downtrend might continue for days, and might also end tomorrow. Let's look deeper
As we can see, Bitcoin fell to a new low of 9.6k, way below the bottom Bollinger band. It seems like this correction was for seen by short sellers, as that particular live liquidated millions of dollars in short sells.
The RSI is also below 50, and this is a sign that the bears are solidly in control. We might see further bearish action in the nearer future
How to trade this market: Short BTC at 9800, then buy the rebound with your profits. You'd be happy you did. At least I know I am.
My favourite performer of today. All my long positions from yesterday were closed at today's high for a total profit of 12% on my portfolio. Amazing.
Here is a chart for visualisation:
BAT has also mirrored Bitcoin's movement, because of it's close correlation with Bitcoin. So most of the stuff I said for Bitcoin also applies here.
In fact, all the cryptocurrencies on this list have similar graphs to Bitcoin, as you will see.
That said, the volume behind the buying trades on BAT is increasing steadily. This might signal that the downtrend is coming to an end.
RSI is mostly below 50 though, kind of thwarting any bullish reversals we might be hoping for. That said, we still have some life given the new bullish candles that are forming.
The RSI lines are also ascending now, which means that an uptrend is coming soon.
How to trade this chart: BUY THE DIP
Last on the list is ETH. And boy what a day for ETH.
All my short positions were also closed, leading to a 4.72% profit for me. On the flip side, the ETH market is down by that exact same percentage.
So what can we expect from ETH tomorrow? The buying volume is extremely strong, and RSI is approaching the 50 level very fast. We will see some bullish movement tomorrow.
Thanks for reading.