- The entire crypto market is looking bearish
- If equities crash, risk-on assets like cryptocurrencies are likely to lead the selloff
- I’m dollar cost averaging my way through the dips while avoiding sh*tcoins like Shiba and Ethereum tokens with no real-world utility. You can view my watchlist / portfolio here: Watchlists on Breaking Metrics
Bitcoin / $BTC
- Bitcoin price is working its way into oversold territory – that means we’re likely to retest lower $18k levels
- Consistent rejections of resistance line breakouts confirm we’re still in a downtrend
- Price is getting squeezed between resistance and support – we may not see ~$20k Bitcoin again for a long time if we break down below $17k.
Algorand / $ALGO
- Take note of the red hammers where $ALGO has been consistently rejecting any breakout of the downtrend since the spike in price in late September
- Several pennant breakdowns confirm the bearish trend
- Given the daily RSI level and Fibonacci line at ~$0.31, this is a good place to buy for me. Your risk tolerance could be different from mine, so please do not misconstrue this as financial advice
- If the RSI is oversold and price has hit the lower levels of the fib retracement, this tells me that a local bottom could be in for $ALGO at the tip of this triangle
- Then again, if the crypto market crashes again, I’m betting that $ALGO will go lower
Polygon / $MATIC
- This should be a bullish pennant formation since it’s coming from an uptrend, but I believe it’s not for several reasons:
- The pennant has been dragging on for way too long and price support is waning
- The RSI is in a downtrend but hasn’t hit oversold levels yet
- Volume has been steadily decreasing – volatility incoming
- Price is too close to resistance and breakouts have been rejected 3-4 times at that trendline already.
- It seems like anyone left swing/day trading $MATIC after August are retailers thinking they’re going to catch a major uptrend like we saw in June/July. Not likely to happen.
- I don’t believe support will hold where the small red arrows are pointing to
- I’m expecting a breakdown into the grey shaded area – this is the target I’m looking at to dollar cost average more buys
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