Technical Tuesdays - 29/09/2020

Technical Breakdown

Dear Traders,

Welcome back to the first official ‘Technical Tuesday’ and considering these newsletters will be more common as we go into Q4, I wanted to share some more technical analysis with everyone and just try to provide as much value as possible and make sure that the content I’m putting out is much higher in quality. I will produce this technical breakdown every Tuesday moving forward as well as other series.

Firstly let me just say that I guess the market is currently just moving sideways and there is not too much volatility at the moment, currently there is two different sides to price action at the moment when looking at ETH/USD, on one hand, the current price is holding above $350 very well and overall this is an important level that has to be maintained by bulls but on the other hands it currently seems as $360 is still acting as our resistance and even though did get above it failed to hold and invalidated a S/R flip which is what I talked about wanting to see in the previous newsletter.

While I guess there is an argument for both bearish and bullish scenario at the moment, my personal opinion has always been that $360 is a more important level compared to $350. While this is technical up for speculation I would still need for price to get above $360 and flip that level into a clean support before opening up fresh positions again. While I may not be long with leverage at the moment on ETH, I do of course hold a spot position in the market as I do with majority of my longterm plays.

(This is the most bullish scenario chart just so you can see an example)

Looking at BTC / USD, currently you can see that similar to Ethereum a pretty important level that used to be support, but is now acting as resistance which is a more bearish signal when it comes to reading just pure price action. But in the case of BTC it actually looks a little stronger as price is actually still holding above $10,500 which has been a key level on the HTF chart for the past few months.

It’s important to remember that price being above $10,000 is a very bullish sign as it is something that for previous years has been a very hard challenge. So price just being above $10,000 is a very good sign for the bigger picture and macro trend. While price action LTF might be be able to find the current momentum to get back above $11,000 its important to zoom and just understand just how much HTF support is below us and just how big the order book favors HTF bids below $10,000.

Hope everyone enjoyed this little newsletter this Tuesday, I know the market might be a little bit low in terms of volatility right now so not seeing the biggest move but I think it is always good to keep your ideas and opinions fresh in your head. Please feel free to signup to this newsletter if you think it is a good read! Thanks again.