1?? BTC/USD
If you’re a regular reader of Market Meditations, you’ll know we’ve been expecting to get towards $50k ever since we broke the 0.382 level.
We now find ourselves at 0.618 which is a key resistance level. There’s 2 scenarios here:
We break the 0.618 level. If we break this level, we’ve broken the downward macro trend.
Downtrend resumes. It is not unreasonable to see a downtrend resuming at this level.
If we consider these 2 scenarios, we arrive at the conclusion that this is not a great entry level. Risk to reward does not look attractive and worse still, it would be difficult to select an invalidation level. You’d be buying into a key resistance level.
The short term price action has been bullish and so we are also not interested in a short position.
Our best play? Wait and see what happens at this key resistance level. Hope for the best and prepare for the worst.
ETH/USD
Very similar to BTC. Facing a key resistance level at 0.618 level. Every argument we gave for BTC applies here too.
The key difference? ETH faces less resistance at these higher levels. Higher probability play compared to BTC at the moment.
3?? SOL/USD
At a key resistance level with a potential breakout shaping out.
However,we don’t have too much support and the pump seems to be stalling. It’s a high risk entry for now,
The trick to buying high and selling higher is about knowing when something looks overheated. This may not be the case here but we can wait for confirmation of a breakout to be sure.
As always, we’ve used a lot of jargon here. Remember we’ve created a glossary where you can find all our free guides, including technical analysis and fibonacci retracement guides.