MMR

Monday Market Recap (MMR: #15 3/22/21)

Crypto has seen a bit of a consolidation period for the past few weeks; this is nothing out of the norm. Prices can’t go up forever, and a healthy consolidation turns previous resistance into solid support.

Last Weeks Recap

Wow! It’s been a hectic couple of weeks since my last market recap. I could not deliver last week due to some personal issues so let’s check out the tweet I posted as a mediocre substitution.

https://twitter.com/GoonTrades/status/1371499659630362627

Last week Monday, we got a nice correction on BTC after setting in some new all-time highs. While there was no formal market recap, I was sure to point out my view that BTC has come into a large area of support, around 55k. The area of support held, but there was a wick down to 53k. This is an important note as sometimes a candle close confirms support versus a break below on a low time frame. No daily close was recorded below 55k, ultimately confirming the support.

Since then BTC has just been in a consolidation between 60-55k. Let’s jump into BTC for this week on the 8HR chart.

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King BTC

Now, BTC is currently making its way to the bottom of this range in a small downtrend. The overall trend of BTC on the 8HR is bullish, but the trend line is currently being tested. If BTC holds 55k I will remain bullish. There are a couple of things to look out for.

BTC has rejected an area of confluence, the first area being the minor downtrend that holds minimal weight. The second and more concerning resistance is the previous pivot set in at ~58K on Feb 21st. The rejection of these areas offered a nice short entry, and a break below 55k could send BTC lower into the 50-53k range. Currently, BTC still offers a decent R:R long, but my eyes are elsewhere.


An Extremely Bullish Exchange and Network Token: BNB

BNB is currently coiled up into a triangle consolidation. This is a pattern we have seen multiple times, with both recent ones breaking to the upside. BNB tends to breakout with high volatility, so this is a rare occasion where I consider a breakout trade. Knowing that BNB breakouts often tend to offer lots of volatility, it is intuitive to structure a breakout trade with a tight but protected stop loss while targeting a significant move. In this instance, I have placed a stop below the 1 HR pivot with a target to previous ATHs. While this trade is far from a shoo-in, I believe that it maintains a positive expected value.

Editors Note: Withing the time of writing BNB has broken out and is now attempting to confirm the trendline as support on the 1HR timeframe!


New Kid on the Block: SOL

Solana caught a nice bid in last night’s Asia session. I have been eyeing this layer-1 network as it is nearing the top of its range. We are currently retracing into my next level of interest. There is plenty of support here for SOL as a retrace down to ~15 will confirm last night’s breakout. It is important to note that since last night a double top has been put into place, but it seems buyers have stepped up. My first target is previous ATH’s, but I am looking for a further breakout. This is a name to watch in both the short term and long term.


The Dex of the BSC: CAKE

PancakeSwap has been one of the top performers of the day, up nearly 20%. This has confirmed the breakout, but CAKE is coming into a bit of resistance around $30. Looking at CAKE know it seems it has a ton of momentum so I would stay away from shorting it, but I am also not too keen on a long from these levels. My first area of interest would be a retest of the Weekly level around 11.6. Further down, $11 also looks like it could give a nice R:R entry. Overall, as the market and BNB show strength CAKE will be a token, I expect to outperform multiple other names.


Pulse of the Market

Crypto has seen a bit of a consolidation period for the past few weeks; this is nothing out of the norm. Prices can’t go up forever, and a healthy consolidation turns previous resistance into solid support. My eyes have remained off of BTC as ALT coins are beginning to see a large flow of money. In this market recap, we can see a lot of relative strength in coins such as BNB, SOL, and CAKE among the thousands of other ALT coins. This what I have been looking for as DeFi seems ready for another leg higher. Remember, it is always important to practice risk management because the market can stay irrational much longer than most can stay solvent.

Overall, crypto markets are just getting heated up as more institutions begin adopting BTC. As this market continues higher, we will see a large influx of interest in altcoins, specifically DeFi protocols. Don't think this market is over, it is just getting started! Be sure to check out the next release of this weekly series on 3/29.

I would greatly appreciate all and any feedback to continue improving this content and my trading abilities.

Feel free to reach out on Twitter!

For those looking to get started trading, use these links to receive a fee kickback and support me! ~(You will also get a 5% discount on trading fees)  😊

FTX

Binance

P.S: Its a win-win, and I greatly appreciate the support!

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