29 Dezember 2020

TA Tuesday: New Year’s is just another day in the crypto markets

Patrick Heusser

Patrick Heusser

Head of Trading bei Crypto Broker AG

Über den Autor

This will be our last TA-Tuesday for 2020. In honour of the „king“, it will be just about the BTC$ price action.

Since we are in uncharted territory and most people tend to focus on psychological numbers only, e.g. 25k, 30k, and even 50k, I have decided to zoom in to the 1h chart to see what short-term trades are at hand for the year end.

BTC$ (1h)

I am focusing predominantly on the Ichimoku cloud and the liquidity pools (volume bars on the right-hand side).

As you can see, the baseline (blue line) has been a very good trend indicator since the beginning of December. Whenever it was violated (to the downside), the lower band of the cloud provided support.

Things got a little bit messy when the cloud started to flip around from bullish to bearish and back to bullish. But during that phase, we formed a nice liquidity pool (at around 23k).

For short-term trades, I am trying to apply the observation I just described. Currently, we are below the baseline, which means that I will only engage in long positions that are very close to the lower band of the Ichimoku cloud. Also, we are in the process of forming a liquidity pool at around 27k.

I would like to see a quick reaction of the price back above the upper band of the cloud (or even above the baseline). But I am actually leaning towards short setups. However, before I engage, I want to see the baseline break into the cloud and see the price retesting the baseline (like it did around December 22nd).

I am afraid to say that there is no immediate trade that jumps out at me, but I hope I was able to give you some guidance as to what to look out for. And do not forget that price actions at year end can be brutal…