Let’s analyze another crypto asset during the holiday season and Christmas. This is the perfect time for learning and analysis so that we don’t miss out during market moves.
🌐 Overview Bitcoin
As always, let’s analyze Bitcoin before diving into today’s altcoin. In the 1-hour timeframe, Bitcoin is still inclined to drop, and red candles have pushed the market into an oversold condition, likely reaching the 92722 zone.
Try to stay calm and unaffected by the green and red candles. If 92722 is broken, we could target lower levels such as 86K and 81K. I have personally reserved funds for these levels.
If Bitcoin dominance rises during this drop, altcoins are expected to experience sharper declines.
📊 Weekly Timeframe
In the weekly timeframe, DYDX is among the coins that remain in its large box and has only risen slightly from the support of its smaller box, experiencing a drop after getting rejected at 2.6416.
Most crypto coins are within their boxes, which can be considered long-term accumulations. With an influx of capital and hype, they could break out and start strong upward trends.
Personally, I avoid buying within the box, The 2.6416 level has become a key resistance. After breaking it, I’ll either enter at 4.3322 or wait for opportunities in lower timeframes.
If holding this coin, consider exiting after the 0.8572 level is broken.
📈 Daily Timeframe
In the daily timeframe, after forming a box between 0.8572 and 1.3409 and breaking out, DYDX experienced an upward move to 2.6416, followed by a correction.
During the upward move, volume increased significantly, while it has decreased during the corrective moves, indicating a potential bullish signal.
The price has now returned to the top of the previous box, which has turned into a strong support level. This level coincides with the 0.618 Fibonacci retracement, further confirming its importance.
Personally, I won’t buy at this point but may consider entering early after observing a strong candle or if it ranges between 1.3409 and 1.5977 and breaks the range’s top, depending on Bitcoin dominance conditions.
⏱ 4-Hour Timeframe
In the 4-hour timeframe, a structure has finally formed, allowing for futures trading. Positions can be opened after breaking either side of the box for quick profits.
📉 Short Position Trigger
After breaking 1.4098 or with strong momentum in lower timeframes.
📈 Long Position Trigger
The 1.5977 level gains importance with each test, and breaking it could allow for long entries.
However, given the low market volume during the holidays, ensure trades have tight stop losses and quick profit-taking.
💡 $BTC Pair Insight
DYDX’s situation against Bitcoin isn’t great, with a baseless upward move followed by a return to its support level. Be patient; after breaking 0.00002667, this coin can break its resistance levels against Bitcoin and show upward movements against USDT.
📝 Final Thoughts
Stay calm, trade wisely, and let's capture the market's best opportunities!
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️