MMR

Monday Market Recap (MMR:#14 3/7/21)

If NQ can break the secondary downtrend and retake the 12,900 level, crypto should look EXTREMELY bullish. Overall, BTC and ETH look reasonably healthy, and I think many altcoins show relative strength against BTC and ETH.

MMR #13 Recap

This week, I want to take some time to go over one of the charts I mentioned in last weeks MMR. Particularly, lets go back to this DeFi Perp chart, tracking the largest ETH native DeFi protocols.

I mentioned a couple of things about this chart last week. The first being that I would not long the chart into current resistance at 10,000. What I said after was more critical, "for me, I would like to see a bullish retest of the D or 10,000 level, which would make me extremely bullish on all De-Fi." This exact setup was given this week on two occasions, validating my overall bullish posture on DeFi.

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As circled in green, DeFi perp tested an area of confluence twice. These were both tests of the trendline placed last Monday in confluence with the D level marked. Overall this chart sets up the whole article; as with DeFi perp well over 10,000 I remain incredibly bullish on the market. Let's jump into the rest of the crypto names!

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King BTC

BTC has run into resistance I accounted for around 51,000. This is a crucial daily level and a triple top that BTC is now rejecting from. I am currently long from 49,900  and have a nice invalidation below 47,890. BTC looks relatively bullish, attempting to set in a higher low. The bigger picture here is what happens on the Nasdaq as tech and BTC have been positively correlated.


Big Tech: /NQ

The Nasdaq futures opened strong but have respected the downtrend in place. NQ is currently in an interesting position as it is respecting its current steep downtrend but bouncing on long-term support levels. NQ has bounced on its long-term uptrend and the M level, creating a healthy level of confluence. As the macroeconomic backdrop continues to heat up, we should expect continued volatility across traditional and crypto markets. I am currently leaning towards a bounce on conventional markets such as NQ, but I have a bit of bias introduced through the BTC long and crypto positions I hold. If NQ can break the secondary downtrend and retake the 12,900 level, crypto should look EXTREMELY bullish.


DeFi's Gold: BNB

BNB is attempting to break out of its current triangle consolidation once again. Again, this chart remains fairly bullish, setting a higher low, but yet to place a higher high. If BNB is able to break 270 it looks like it will easily test 300 and previous all time highs shortly after that. As of now, volatility on BNB is low, but we have seen the last breakout of a triangle consolidation. Keep an eye on the name; I have my fair share of a spot BNB bag.


King of DeFi: ETH

ETH has show relative strength against BTC in the past couple of days. Currently, ETH is coming into a small bit of D resistance but working its way back to all-time highs. A nice entry on ETH can be found in confluence with 1500 and the secondary downtrend. A nice invalidation is given below the M level at 1400. My long-term thesis still holds here that ETH has a very high probability of outperforming BTC in the coming weeks and months.


The Pulse of The Market

In this week's recap, I zoomed out and looked at some market-wide "indicators." Looking at NQ, we can see the bearish case for BTC. If NQ continues to break down from this macro support level, then we can probably expect crypto to follow to a degree. Recently, the two markets have shown a high correlation, but a decoupling is not out of the question. 

I currently maintain a solid bullish posture on crypto markets and especially alts. As BTC and ETH continue to show strength, they may not be ready to break back out to the upside. A further consolidation here would be an excellent recipe for large altcoin moves. Whatever the case, crypto markets look bullish besides the slight weakness in traditional markets hindering them.

I specifically chose to leave out smaller cap altcoin charts in the instillment to filter some of the noise out. By looking at the large cap names and other markets, it helps get an overall grasp of the market's direction. I will leave it at this; BTC and ETH look fairly healthy, and I think many altcoins show relative strength against BTC and ETH. I am keeping my eyes out for some nice volatility in the coming weeks! 😊

Overall, crypto markets are just getting heated up as more institutions begin adopting BTC. As this market continues higher, we will see a large influx of interest in altcoins, specifically DeFi protocols. Don't think this market is over, it is just getting started! Be sure to check out the next release of this weekly series on 3/15.

I would greatly appreciate all and any feedback to continue improving this content and my trading abilities.

Feel free to reach out on Twitter!

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