Many altcoins losing support
All of the setups from the previous post are now in pretty good profits!
Many other setups are looking good for shorts, but I am watching these levels on BTC. Each of the support levels marked are areas where BTC should find some reasonable support and at least hold for a short period of time. These support levels may give altcoins the chance for a weak recovery to set up for more shorts, but we need to be patient and keep an eye out for those setups.
Adding this LTC setup to the watchlist. Approaching recent market structure and looking for some sell pressure for it to reject and make another swing low.
Adding an ICP short setup to this watchlist as it comes in for a bearish retest.
Remember that weekend price action can be volatile so it’s possible that a better entry comes over the next day or two.
This week is starting out pretty bearish. BTC has had a 2% drop to start the week and along with this many altcoins are losing some big support levels. I am watching for weak buyer recovery to short some setups similar to these shown. Without making this too long winded, here are just a few setups that I am watching.
The first being ALGO as shown in the chart above. It is having a weak buyer recovery back to a well-respected support (now resistance) level.
Below we have SOL which has broken from a price compression triangle. It’s currently bearishly retesting the lower trendline making this a good short entry for my strategy as a stop loss can be pretty tight.
And ADA is on my watchlist as well. Similar setup to ALGO above with a loss of a support level and coming to bearishly retest now.
I will leave it with just those 3 setups for now to keep it simple. Have a scan and find setups similar as many are looking bearish to me currently. I do not have set price targets on these setups yet and will be keeping an eye on the price action.
Also be aware that the US CPI news is coming out in 2 days and that could cause a lot of volatility, therefore these may end up being positions that are only held for a short period of time to lock in profits.