Markets are showing classic bull run behavior with these wild swings we’re seeing. The Fed’s dovish stance has certainly stirred the pot, but remember - in crypto, volatility is our bread and butter.
That said, we need to trade smart, not just ride the hype. 🎢
Looking at the technicals, #RSI readings need careful interpretation in this environment. 📊 While traditional markets consider RSI above 70 as overbought, crypto can sustain these levels much longer during strong bull trends. I’ve seen RSI hover above 80 for weeks during previous crypto bull runs.
RSI Divergence
However, when you spot RSI divergence (price making higher highs while RSI makes lower highs), that’s still a reliable warning sign. ⚠️
The surge in #Xrp #Sol and #Doge Dogecoin is giving me flashbacks to 2021. 🚀
While these pumps can be profitable if you time them right, they’re often warning signs of market froth. The rise of worthless memecoins is a late-cycle indicator (remember nfts?) - when your neighbor’s dog gives crypto tips, it’s time to tighten those stop-losses. 🐕
Key things I’m watching: 👀
Volume patterns - Are buying volumes decreasing while prices rise? Classic distribution pattern. 📈
Weekly supports - These are crucial levels during pullbacks in a bull market. 📉
Bitcoin dominance - When it drops too quickly, it often precedes market-wide corrections. 👑
For position sizing, I’m running tighter than usual. This bull market has legs, but pullbacks can be savage. Better to catch 70% of a move with good risk management than blow up your account trying to catch tops and bottoms. 💼
Remember, the market will give us plenty of opportunities. No need to FOMO into every pump. Stay liquid, stay rational. 🧠
How are you positioning yourself in this market? Are you seeing any particular indicators that catch your eye?
