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22 September 2020

TA Tuesday: A look back at Monday

Patrick Heusser

Patrick Heusser

Head of Trading at Crypto Broker AG

About the author

Yesterday may not have been a bloody Sunday, but it was definitely a bloody Monday…

BTC$ (4h)

We are back below the 10.5k level after we touched the 11.2k resistance. This is a pretty disappointing development for the bulls. We did not manage to turn the Ichimoku cloud bullish, and we were not able to hold the price above the upper band.

Now, we are back below the bearish cloud and below 10.5k. I am watching the daily chart very closely as well, and if I see any signs of more weakness, I will flip from bullish to neutral. I am even looking at going short in the short term with a stop just above 10.5k.

ETH$ (4h)

The picture here is very similar to that of BTC$. We quickly went up to our target level of $390, but could not hold it. After we broke lower (even lower than our last range of $360-380), things started getting really ugly.

Around $330, the 61.8% Fibonacci retracement level will come in, which has worked as support before. I am on the sidelines in terms of ETH$ at the moment. If we break below $330 on a daily closing basis, I see $290 being the next level where we will consolidate.

ETHBTC (4h)
I am bearish below 0.03300. That’s it… that’s the call.

ATOM$ (4h)

$4.50 gave way and we traded down to the next bigger liquidity pool at around $4.

I am bearish as long we stay below $4.50.

DOT$ (4h)
This is one of the few coins that still looks okay in terms of going long. $3.70 is your invalidation level for any long positions.

BAND$ (4h)
The bearish tone continues. $4 is the large support level. There are no bullish signs right now.

LINK$ (4h)
We have the same story here as for BAND$: the bearish tone is continues. $7 is the major support.

LEND$ (4h)

This coin caught me on the wrong foot. There was a nice rally above the $0.75 level, but then we went down as quickly as we had gone up.

This should have been the first warning sign. The second one was when we continuously penetrated the Ichimoku cloud.

The liquidity pool at around $0.55 did not hold for long and we moved back down to the lows we saw in early September. $0.45 needs to hold, otherwise things will take an ugly turn and we will go back down to $0.30.

YFI$ (4h)

To be honest, I did not think we would revisit the 22k level. But here we are…

I will watch this level for a warning sign to then possibly reasses my long position. The good thing is that there are now futures I can use to hedge my longs. They are more liquid than the physical spot pair.

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