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With each passing day, we are getting closer and closer to a monumental shift in the way we experience the Cryptocurrency market. We are about to enter a new dimension of reality, a dimension where 'Crypto is going up'.
I am talking about the much awaited and sought after Cryptocurrency bull-market.
Here we have an interesting chart setup.
$COMP corrected the last bullish wave piercing the 0.618 Fib. retracement support level. It was pierced on a wick 20-Dec. but the close happened above. Then it was challenged again, for a day, and a recovery quickly followed. The second attempt at breaking this #support resulted in a short-term higher low.
The entire correction move amounted to 52% negative (-52%). This is a very strong correction. A fast one.
Now, a final shakeout can happen, another drop; but we cannot trade based on this. We can only trade and take action based on what is happening rather than on varied possibilities. The size of the correction, the duration and the recent higher low work together as an early reversal signals.
The fact that trading volume is almost zero on the drop indicates that there isn't that much selling pressure. These signals favor an advance as being the next move. Again, there can be another drop but the chart and market is saying that the drop is already in.
This is the chart setup. It remains valid, as in strongly-bullish, above $57. Any trading above this level and #COMPUSDT continues aiming higher in the coming months.
For our numbers, we need to be more restricted as such as drop would produce a liquidation. Even with a bullish setup.
The main support short-term is $68, this is the 20-Dec. low. A strong support stands at $71, the 1-Jan. higher low. 5X can handle volatility as low as these prices.
We are bullish on this pair. It is a strong chart setup, but timing is mixed right now. Looks good, but it make take a few weeks if it doesn't start to move right away.
As we get closer to the action and we get confirmed signals, as in high volume on a bullish breakout or some other pairs moving strong, I will write on the post "high probability chart setup."
While I am happy with this one... Anything goes.
Disclaimer: Do your own research, your own planning, your own trading. You are responsible for your own actions, win or loss. Do we agree? We are all adults.
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