reetings, esteemed ACG community members!
In today's analysis, we will explore the current state of the cryptocurrency market. BTC is hovering around a weekly resistance, while USDT.D is situated around a critical level that will likely set the tone for the remainder of 2023.
Additionally, we will delve into the analysis of five altcoins (SOL, DOGE, MKR, ROSE, and SKL), focusing on their key levels and potential trading setups.
Are you ready?
Table of contents
- USDT.D and BTC Analysis
- 5 Altcoins Analysis
- Quotes / Advices
- Closing Remarks
- USDT.D and BTC analysis
As usual, I always start my analysis with USDT.D as it serves as an indicator of traders' sentiment. USDT.D reflects whether traders are optimistic (investing in cryptocurrencies) or pessimistic (shifting towards stablecoins).
For an entire month now, USDT.D has been hovering within a narrow range around a strong resistance zone.
The longer the range persists, the closer the breakout will be, setting the tone for the rest of 2023.
In the H4 timeframe, from a short-term perspective, we can observe the range in a zoomed-in manner.
After rejecting the lower bound of the range, USDT.D is now hovering around the median.
For the bulls to maintain control, a break above 6.5% is necessary.Conversely, if the 6.2% level is breached downward, we can anticipate a bearish continuation towards the 5.83% support.
Presently, BTC is still following a predominantly bullish trajectory, operating within the upward channel outlined in orange. However, it is approaching the resistance area spanning from 38,000 to 40,000.
Thus, there is a possibility of a significant bearish correction, which needs confirmation on lower timeframes.
For the bulls to maintain control, a break above 38,000 is necessary. In this case, a movement towards 40,000 would be expected.
In the H4 timeframe, for short-term bearish control, there needs to be a drop below the recent minor low at 37,450. If this occurs, we might anticipate a move towards the lower red trendline.
Following that, for medium-term bearish control, a break below the last significant low at 35,650 is necessary. Should this happen, a potential movement towards the 32,000 support level could be expected.
2. 5 Altcoins Analysis
Let's start with SOL. After surpassing the 50.0 round number resistance level mentioned a couple of weeks ago, the Bulls assumed control.
Currently, the next resistance would be the 75.0 zone highlighted in blue.SOL will remain bullish unless the 50.0 level is broken downward again on the daily timeframe.
In such a scenario, the bearish correction would initiate, pushing the price toward the 30.0 support again.
Shifting our attention to DOGE, after rejecting the 0.055 support, it has been bullish and is now approaching a strong resistance zone.
For the bulls to maintain control and assume dominance from a long-term perspective, a weekly candle close above 0.097 is required.Meanwhile, the bears could still initiate one more correction.
In the Daily timeframe, as mentioned a couple of weeks ago, for the bulls to take over in the medium term, a break above 0.065 is needed.
DOGE has broken above 0.065 and is now bullish, trading inside the rising wedge in green.
The bulls will remain in control, pushing the price towards the weekly red resistance, unless the lower green trendline is broken downward.
Examining MKR, after breaking above 1300.0 as mentioned a couple of weeks ago, the bulls took over from a long-term perspective.
Lately, MKR rejected the 1300.0 level, now acting as support, and is currently heading towards the 1800.0 resistance.
In the Daily timeframe, MKR has been hovering inside a large range. For the bulls to remain in control and push towards the 1800.0 resistance, a break above the previous major high in red at 1605.0 is needed.
Meanwhile, MKR can still reject the red major high and trade lower, with confirmation if a bearish reversal setup is activated on the H4 timeframe.
After rejecting the 0.04 support, ROSE traded higher. Currently, ROSE is situated around a strong structure from the weekly timeframe, highlighted in red.
For the bulls to take over from a long-term perspective, a weekly candle close above 0.087 is necessary.
Meanwhile, as long as the 0.087 level holds, the bears can still initiate one more bearish correction.
In the H4 timeframe, the bulls will continue to be in control as long as ROSE is trading inside the rising channel outlined in green.
For the bears to take over and shift the momentum from bullish to bearish from a medium-term perspective, a break below the last major low in green at 0.0795 is needed.
As per our last analysis a couple of weeks ago, SKL broke above 0.03, indicating the bulls took over in the long term and pushed the price higher.
Currently, SKL is undergoing a correction phase, so we will be looking for trend-following buy setups on lower timeframes to catch the next upward impulse.
For the bulls to take over, a break above the last minor high at 0.046 highlighted in red is required.
Meanwhile, until the buy is activated, SKL would be bearish in the short term and could still trade lower to test the 0.03 demand zone, where we will be looking for new buy setups.
3.Quotes / Advices
Here are my Risk Management Golden Tips:
Set Stop-Loss Orders: Define exit points to limit losses.
Diversify Portfolio: Spread investments to reduce overall risk.
Risk-Reward Ratio: Assess potential gains against potential losses.
Position Sizing: Determine the right amount to invest per trade.
Stay Informed: Monitor market trends and news for informed decisions.
Use Leverage Wisely: Avoid excessive borrowing to minimize risk.
In summary, this overview begins with an overview of USDT.D, highlighting its month-long consolidation around a strong resistance zone.The evaluation extends to BTC, noting its current bullish trajectory but warning of a potential bearish correction near the 38,000 to 40,000 resistance area.Turning to five altcoins, SOL remains bullish unless breaking below the 50.0 level.DOGE approaches a strong resistance zone, requiring a weekly candle close above 0.097 for bullish control.MKR has taken over from a long-term perspective but is in a range, needing a break above 1605.0 for continued bullish momentum.ROSE needs a weekly close above 0.087 for long-term bullish control, while SKL, after a previous long-term takeover, is undergoing a correction phase, with attention on trend-following buy setups for the next upward impulse.