– Extended weekend in US creates significant volatility and significant trading opportunities.

– Watch for primary retracements in cryptocurrencies.

Weekend cryptocurrency pullbacks are buying opportunities

Weekends are notorious in the cryptocurrency space for generating some of the larger daily moves – and with lower volume. This gives us plenty of opportunities to identify price levels where we can add to a position (Dollar/Pound/Euro cost average) or enter at a new position with a discount from prior highs. I am anticipating some normal pullbacks in cryptocurrencies as we transition into the extended US weekend. The entries I am targeting are Limit Buy orders – Limit Buy orders are orders you place below the current traded price. A Limit Buy order basically says, “I’m only willing to pay X amount, but no higher, for this item.” Limit Buy orders are filled on a first come, first serve basis so it is a good idea to have your orders there before everyone else. It is very normal in both the stock market and the cryptocurrency market for you have a pending buy or sell order not trigger even though price moved to that level.

Litecoin buy entry

Monthly Litecoin Chart

Above: Monthly Litecoin Chart

I am looking to enter a Buy Limit order for Litecoin at $112.38. This level is ideal because it represents a -40% drop from the recent highs. -40% might seem like a lot, but it is perfectly normal for Litecoin to experience that amount of a retracement in a new expansion phase. The -40% retracement is also where the monthly Kijun-Sen is at, so support should be strong here and hold if it moves down to that $112 value area.

Limit Buy @ $112.38

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Ethereum buy entry

Weekly Ethereum Chart

Above: Weekly Ethereum Chart

Operating on the same percentage retracement ratio that we saw on Litecoin’s chart, I am looking for a retracement lower for Ethereum. The weekly Kijun-Sen for Ethereum is -41.50% from the prior high, creating the same dual support condition we saw on Litecoin’s monthly chart at $791.52. Do note though that we could see Ethereum move slightly lower to the -47% retracement to coincide with the monthly Kijun-Sen level at $709. The next support level beyond the monthly Kijun-Sen is Senkou Span A at $623.

Limit Buy @ $791.52

Cardano buy entry

Weekly Cardano Chart

Above: Weekly Cardano Chart

What should seem like a recurring theme here is Cardano’s -40% retracement from its most recent major high. That retracement matches up with the weekly Kijun-Sen at 0.2314. However, traders have already tested that level on this current weekly candlestick. That doesn’t mean it won’t tested again. Should we see traders push Cardano to $0.2314 and support holds, expect to see Cardano lead the altcoin market in any recovery rally. Take note that the current weekly candlestick is very, very doji-ish. There’s still a few days left until this weekly candlestick is resolved, but at the present we can see equilibrium forming at the $0.30 value area. Barring any extreme movement higher or lower, it looks like this weekly candlestick could close as an inside bar, creating a more clear entry next week for where to go long or short.

Limit Buy @ 0.2314

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(Excerpt) Read more Here | 2021-01-15 15:29:00
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