Complicated week that we are seeing in the market with a new break of the support zones. We haven’t just seen defined and sustained trends over time. The market moves in an environment of insecurity and uncertainty continuously, which advises us to be agile when entering and exiting. This is territory for short-term traders.
We do not yet have a scenario for longer-term operators
Looking for support zones
This is what the price seems to tell us in the last hours, in which it has forcefully broken the support zones and has re-entered what was the old distribution channel of the previous fall
Does that mean we’re back in range?
I think that is the big question that we are going to have to find an answer to in the next few hours. The truth is that this situation reminds us of that maxim that says that the market always has the capacity to surprise you, and as you can see in the graph, we did not have a scenario like this in mind
One more demonstration that the trader never has to lower his guard
Strong volume input
A standout in this move is the strong volume inflow we have seen in the market, according to the charts. We must remember that we are in decentralized markets, and I am not referring to exchanges that have a centralized structure. But the fact itself is that there is no common market for all exchanges, so the volume data that we can see on platforms will belong to the Exchange that we are monitoring.
This deserves an interesting reflection, since for practical purposes, although you and I are looking at BTCUSD on our platforms, we are actually looking at two different products or investment vehicles, if we are doing it on different exchanges.
Ethereum follows in the footsteps of BTC
Although it is true that we can see how there is a faithful correlation between the two main assets, we have been insisting for months that the situation is different in other aspects. If we look at the details, ETH has made a much more consistent upward movement than BTC that has allowed it to move away from the old distribution channel and even pierce higher resistance zones, establishing new support zones.
That is precisely the point where it is now, in the upper support zone
Market turn
We close this weekly period in a clear turning phase, which we hope will be a technical correction. The truth is that at the level of the DEFI ecosystem, the setback is absolutely generalized and is consistent with the main players in the market
What can we do about this situation?
It is a question that has different answers based on our profile: Obviously, if we are holders, we cannot consider selling our assets, and that leaves us in a complicated position
Maybe trading can give us the answer
A very interesting option is to combine our long-term positions with short-term operations that allow us to compensate for these market declines. We can do it with trading systems, which have a very important capacity
We can profit from market declines
It is an example of the strategies we can follow to balance our returns. The fact that the market falls does not force us to sell our assets, nor does it prevent us from taking corrective measures
In that sense, we are already applying measures of this type, which allow us at BELOBABA to solve this type of situation with good results
I would like to learn how to take advantage of bear markets
If you do not know these techniques, from BELOBABA Academy this Autumn we will have something interesting for you, which can help you to leave behind the losses of your portfolio in times of price declines.
If you are interested, do not hesitate to contact me and I will tell you all the details
Waiting for the market recomposition
After a movement of this type, there is nothing left to do but be patient and wait for the market to recover, taking into account two scenarios:
- Prolongation of the bearish movement, which would mean a change in sentiment
- Recovery of previous levels, which would leave this episode in the category of technical correction
As always, the market consensus will decide… we are mere spectators. But remember that this does not mean that you cannot do anything and remain at the mercy of the evolution of the price.
We can act, and if we do it well… we can also take advantage of these situations