Key Observations
Price Trend: The asset shows a spike followed by consolidation.
Volume: Volume spiked significantly during the rise but is tapering off, signaling reduced buying momentum.
MACD: The MACD is nearing a bearish crossover (DIF crossing below DEA), signaling a potential pullback.
MA Indicators: Shorter-term MA (5) is above the MA (10), indicating recent bullish momentum. However, the gap is narrowing.
Long Strategy
Entry Point:
$2.80-$2.84: Look for confirmation of support near this range.
Ensure the price remains above the MA (10) for entry.
Take Profit (TP):
TP1: $2.92 (recent resistance)
TP2: $3.05 (next significant resistance from the spike)
Stop Loss (SL):
$2.76: Below the recent consolidation level to limit risk.
Trade Duration:
1-3 days, depending on whether the resistance at $2.92 is breached.
Short Strategy
Entry Point:
$2.90-$2.92: Look for rejection or failure to break above this resistance.
Confirm with bearish MACD crossover or declining volume.
Take Profit (TP):
TP1: $2.80 (support from consolidation)
TP2: $2.75 (next significant support)
Stop Loss (SL):
$2.95: Slightly above resistance to avoid false breakouts.
Trade Duration:
1-2 days, as short-term pullbacks tend to be swift.
Contingency Plans
If the trade goes against you:
Plan A: Reevaluate Key Levels
For longs: If price falls below $2.76, exit and wait for a test of $2.70-$2.72 (next support) to re-enter.
For shorts: If price breaks above $2.95, exit and wait for confirmation of a new high near $3.00-$3.05 before re-entering.
Plan B: Shift Trade Horizon
If signals fail on the shorter timeframes, shift to higher timeframes (4H or 1D) to confirm overall trend direction before re-entering.
Plan C: Hedge Positions
If in a losing long position, open a small short position at $2.92 to offset losses while holding your initial trade.
Plan D: Cut Losses
If multiple indicators fail, exit all trades and wait for clear confirmation of trend direction.
#BitwiseFiles10ETFs #BSCOnTheRise $WLD