Learning to Identify Key Assets Before Major Movements 📊
Something I have noticed over time is that, before the general market has a strong movement, whether it's a drop or a rise, some coins or assets show leading behaviors. They seem to act as early indicators of what might come for the rest of the market. But here’s the challenge: how to identify which are those relevant coins or assets?
The behavior before strong drops 🛑
When the market falls aggressively, it is common to see certain coins have a sudden upward momentum, even disproportionate, days or weeks before.
These coins generally break key levels with high volume.
They are usually assets with strong speculation or fundamentals that catch attention at the moment.
This movement can be a trap, as after that peak, they usually lead to the most significant drops.
What can I do to identify them?
1. Look for outliers (coins that do not follow the general trend):
If Bitcoin and Ethereum are stable or falling, but you see an altcoin rising strongly, put it on your radar.
Watch if it breaks significant resistance levels.
2. Check the volume:
If the rise has a volume significantly higher than average, it could be a speculative movement that will reverse soon.
3. Look for correlations with Bitcoin:
If a coin rises while Bitcoin is weak, it could be taking advantage of residual liquidity, but that strength is not always sustainable.
The importance of key zones in these moments 🎯
Something that has worked for me is staying true to a strategy based on key levels. The price always respects important zones before a big movement.
What are key zones?
Major supports and resistances (in timeframes like H4, daily, or weekly).
Confluence zones with Fibonacci or important moving averages.
How I operate with these zones:
1. I patiently wait for the price to reach them.
I do not chase movements. If the price has already broken and moved away from the key zone, I wait for the next retracement or test.
2. I look for confirmations in those zones:
Candle patterns (engulfing, pin bars).
Reaction with increasing volume.
Divergences in RSI or MACD.
3. I accept that not all zones are definitive:
Sometimes, the price can break the key zone and continue to drop. That's why I use tight stop losses to protect myself.
The problem of "finding the perfect coin" 🤔
One of the biggest challenges is choosing which assets will have the most significant movements. This is where I try to apply these principles:
I diversify my options: I do not focus on a single coin, but rather on a group of assets that are in interesting zones.
I use watchlists: I keep a constant track of the coins that are near important levels.
I analyze liquidity: Coins with more volume and liquidity usually have clearer and more predictable movements.
An additional trick:
If you see that Bitcoin is falling sharply and a specific altcoin is holding at a key support, that could be a signal that this coin has accumulation and may lead the next rise.
The key is patience and observation 🧘♂️
It's easy to get carried away by FOMO when you see fast movements, but I have learned that waiting for the price to approach my key zones is much more profitable than chasing the market.
If the price does not reach my levels, I do not trade. If it breaks my levels without a clear reaction, I also do not trade. This has not only helped me protect my capital but also to identify stronger patterns over time.
Final Reflection: The market always speaks, but you must know how to listen.
It is not always easy to identify the assets that will lead market movements. But if you learn to observe:
What coins act differently from the rest.
How they react in key zones.
What patterns repeat before major movements.
You will realize that you do not need to predict everything. You just need to have patience, observe carefully, and act when the odds are in your favor.
#KeyZones
#PatienceStrategy
