MMR

Monday Market Recap (MMR: #18 4/19/21)

Markets have rolled over after the COIN listing. A cascading liquidation event fueled this due to excess open interest. It was made apparent that this rally was fueled primarily by derivatives, and eventually, the market ran out of buyers.

MMR #17 4/12 Recap

ETH was able to get a continuation higher after last week’s MMR recap. I was extremely bullish on ETH due to the volatility contraction above the D 2,000 level. ETH was able to test ~2,600 before a series of cascading liquidations corrected the market. On April 18th, markets saw a broad correction with ETH and BTC wicking down 20% +.


King BTC

BTC also experienced this liquidation event, with a 20% drawdown. BTC Wicked down to support around ~51,000 before being quickly bought up. BTC sits 10% higher, currently performing a bearish re-test on the W level at ~58,000. Until a break above this level, BTC has set in an extensive range between 60,0000 and 51,000. I have no bias on BTC here as it comes into a critical resistance, but I will be eying the ~51,000 level to be ready for an extended move lower. Overall, BTC remains bullish, but a break below 50,000 could result in a more significant move on BTC once again.


BNB

BNB continues to show strength compared to other tokens as it has been able to reclaim the key 500 level. This chart is currently forming a bull flag, and a breakout and re-test of ~550 will confirm an entry on BNB. This trade warrants a nice R:R for those who think 500 is key support. Looking at BNB, a stop loss around 495 and a target at 650-700 could warrant a nice setup.


PancakeSwap: A World Class Dex

CAKE continues to display a high correlation to BNB. CAKE was able to bounce on its primary trendline and previous pivot highs set in early March. This chart is currently running into resistance at ~25.50. As CAKE mirrors BNB’s strength, I would not be surprised to see it outperform due to it being a smaller token. I am scoping an entry on CAKE just below ~22 for a 2 R:R trade. A stop loss below 19 seems secure as it is a key D level and where CAKE bounced during the liquidation event.


Pulse of the Market

Markets have rolled over after the COIN listing. A cascading liquidation event fueled this due to excess open interest. It was made apparent that this rally was fueled primarily by derivatives, and eventually, the market ran out of buyers. This correction is overall healthy and serves as a reminder to always manage risk accordingly through proper stop losses and position sizing.

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 4/26.

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