Again 20,000 USD as the price of Bitcoin. Some will say that now yes, that we are going to the depths, others that it is the last opportunity to buy at interesting prices.
The dynamics of the financial markets accustoms us to always take us to these extremes, and this tendency is accentuated even more in assets with a lot of volatility. Terms like FOMO, haters or lovers are common to define the side to which we join forces
But precisely in these actions lies the great error. By definition, a trader or investor is never emotionally linked to any market situation, he simply designs scenarios and adjusts to them based on the evolution of the asset price.
And back to the channel…
Based on this way of working, we have to say that our bullish hypothesis has clearly failed. In a resounding way, the market has put us in our place, as it always does. This is something that you will never be able to avoid, therefore, once again, the term “management” here takes on its utmost importance.
If you manage the situation properly, it doesn’t have to matter what the market does. In fact… it is not something that has surprised us, since it was the alternative scenario that we had for the market
Clearly, in our second hypothesis, the price zone of 19,000 is considered as a turning point or change in the trend. It has not been necessary to test the level, but the price movement is descriptive enough
The evolution of the price clearly shows the lack of maturity of the market to face an upward impulse
This is the situation, we like it more or less… but the price structure tells us that the market feels more comfortable in the scenario of a lateral channel than not trying bullish adventures
Ethereum follows the trend
ETH has followed the scenario set by BTC and we see how it has once again chosen to consolidate levels. There is still an important differentiating factor:
Ethereum has not clearly returned to the distribution channel
In this case, we have a greater resistance to return to the lateral dynamic and we see how ETH has managed to maintain prices above the ceiling zone of the distribution channel, albeit minimally. We are talking about the 1527 USD
New situation of uncertainty
The conclusion that we can obtain is that the market has not been able to overcome the situation of uncertainty and that, therefore, our investment criteria will lack solid foundations at this time.
Undoubtedly, in these situations large operations and capital gains are hatched, buying at the right time and not being in a hurry
As always, the market will pass judgment, but we enter the last quarter of the year, a period that, if we look at previous years, was clearly bullish, although we have to clarify that in a radically different market structure
This is nothing more than to confirm that the bullish disposition of the market will clearly mark it when we overcome the bearish guideline that began in the previous historical maximum and that would mean seeing BTC above 23,400 USD
Anything lower for BTC will be meaningless from the point of view of seeing big moves to the upside in the long run.
Naturally, this is our criteria, you can develop your own, but the important thing is that it be consistent and stick exclusively to it, given the moment. That is the real magical ingredient of a strategy.
It’s up to you… to be in the herd that goes from one end of the market to the other emotionally… o Manage your positions properly
If this is something that you have not been able to control yet, you can receive the help of experienced traders in our Master Trading course, where we will work with tools and resources that allow you to develop the necessary skills to really manage your trading, in a professional way.