Markets, Trading & Preparation

in #leofinance11 months ago


The markets have been somewhat ambiguous over the past few weeks, and even months. I have avoided trading during this period. However, I am expecting some volatility soon, and as a result, have begun making preparations for some fresh trading activity. Tomorrow is the day of anticipation, at least for platforms and exchanges looking to begin operations in Hong Kong.

Given that entities will only begin submissions tomorrow, we are likely to experience somewhat of a delay in regard to the Crypto market responding to this event. It is also possible that a bit of a “buy the rumor, sell the news” event occurs. However, I wouldn’t expect too much of a drop, even if it is the case. Markets are unpredictable at the best of times, which is why when you are exposed to the market, you really have to be immersed in it.

Bitcoin above $26K is still within an acceptable range. However, lose $26K with a daily close and I would begin thinking that a strong possibility of further downside is rather likely. The market rewards risk-takers, but it also destroys them. However, you have to be in the game if you are to expect even the possibility of a reward. Money is never made on the sidelines. As an investor or trader, you make the best-informed decisions possible.

As the old saying goes: “The sure-thing boat never gets far from the shore”. It’s a game of chance and educated decisions. This particular stage is what I refer to as true accumulation. In other words, the likelihood of the bottom being in is rather likely. Furthermore, even a retracement during this phase is usually extremely brief. What we tend to see at this stage is periods of sideways chop, followed by sudden and significant volatility.

Getting In The Mix

This is historically a good time to combine accumulation with trading, as the market tends to provide opportunities on both sides of the spectrum. We are however seeing somewhat of a wonky head-and-shoulders pattern forming amongst some of the altcoins, as well as BTC struggling to hold $27K. This could be a bit of a minor breakdown. Observation of key levels is definitely the case here.

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Ideally, bulls don’t want to lose $26K. A retracement to that level, accompanied by a bounce, however, might be a good long setup. For now, I am watching. A good trade appears to be on the horizon. Further price action will hopefully point watchful traders in the appropriate direction. What many fail to realize is that trade opportunities mature with the help of confluence and key levels.

At a point of maturation, traders take the risk, knowing that it’s not guaranteed. However, this is as good as it gets. I am getting ready for hopefully what will turn out to be some overdue volatility, in either direction. As always, this is not investment advice, but merely my own personal interpretation of the markets. Catch you next time!


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This article was first published on Sapphire Crypto.