The end of an era
We had a lot of news going on in the world of crypto yesterday. However one thing was of course very significant. CZ is resigning as CEO from Binance. According to The Wall Street Journal, Binance will also plead guilty to a criminal charge and agree to pay a total fine of $4.3 billion. This includes amounts from civil complaints by regulators. The deal would bring an end to long-standing investigations into Binance. Zhao founded the company in 2017, and the exchange quickly grew to become one of the world's largest cryptocurrency exchanges. I will not go into the things that they possibly did wrong, but I would like to say that the crypto community needs to thank him a lot, they would not have been here without him, so thank you and we will see what happens with Binance in the future! For now, we are seeing some corrections a cross the board in crypto markets as effect of the news that came out about CZ, so what levels should we be looking out for now? Let's discuss that in the tradeletter from today!
Monthly timeframe
Looking at the monthly timeframe, this would not be the area where I am interested in buying a lot of BTC to be fair, full filled the FVG and we are almost at a bearish monthly orderblock. Based on this timeframe I would like to see a serious correction towards the monthly bullish orderblock starting at 30K and scale in a position over the orderblock itself. People to the remind themselves that even when we are in a (potential) bullmarket, these kinds of significant retracements happen, so make sure to collect some profits on the way up.
Daily timeframe
Zooming in on the daily timeframe, shows us that we are bouncing from the support level at 35.7K. A move towards the highs around 38K makes sense in my opinion. If you closely to the highs you can see that they are relatively equal. We can find liquidity above the highs in the form of resting buystops, it makes sense to grab the liquidity first, before we are going to see any significant retracement on Bitcoin.
1 hour timeframe
You can also look at it from a range trade perspective. The 1 hour timeframe shows us a clean range which gets respected pretty well. With the dump in price yesterday we had another test of the range low, with a pretty significant bounce afterwards. Would say that we are going to atleast see another test of the midrange, but as stated before, I would not be surprised if we are going to see a test of the range high as well.
All in all, Bitcoin is holding up pretty well even though we got some negativity in the form news. However personally not really a fan of getting in a lot of positions at these prices. You should already have a position from lower or wait, do not fomo into the markets because you think that you have missed your opportunity. Chances will come and make sure to capitalize on them when you have the opportunity.
For now have a nice day!
Written by: Daan Foppen
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