Monday Market Recap With GoonTrades (MMR:4 12/28/20)

Check out GoonTrades' latest article to his series "Monday Market Recaps" (MMR). This weekly post will contain his insight on the overall crypto markets and the BSC through technical analysis.

By
Goon Trades
on
December 27, 2020
Category:
MMR

MMR #3 Recap

Bitcoin has continued its rally into price discovery, peaking around 28,000. Most crypto assets are maintaining insanely bullish price action as we enter 2021. In last week's recap, I outlined a trade I saw on BNB that I didn't take. This was a trade that fit my criteria, but I opted not to take the trade. 

While I don't have any specific reason to take the trade, except for being pre-occupied, it will still fit into my strategy. This trade is a perfect example of why trading is a probability game.

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The first thought here is that my long worked, as BNB  continued to rally, but I would have been shaken out. Ideally, when following my strategy, my stop would be moved to break even after a ~1R move to prevent losses on these types of occurrences. Even though the trade worked, my stop was too tight by literal cents. These things happen while trading, and these occurrences are a huge reason why it's important to trade a plan, not get chopped up by these kinds of things. Enough about last week, what is brewing up in the markets for this week?


King BTC

BTC continues to keep its primary "parabolic" uptrend into the 30,000 territory. We have seen a remarkable rally in BTC going back weeks and even months at this point. 

So what does this mean?

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Following my strategy, I do not incline to short BTC at current levels. My system is strictly structured around trend following, so until the primary parabolic trendline is cracked, I will not be looking for any shorts. I am ultimately very wary of shorting this bullish of an asset, and all shorts will have very tight stop losses in these market conditions.

A couple of levels where I could be a potential buyer is 25,000 and 24,000. A break below these levels would put me on the sideline, looking for a bearish re-test of 22,500. Overall, BTC markets are hazardous due to elevated volatility after an extended move, even on higher time-frames. BTC remains insanely bullish, but don't let that blind you!


The BSCs' Gold: BNB

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BNB is also maintaining a bullish posture, breaking above its previous swing high. BNB is nearing its all-time highs (ATH), 40. We could see a re-test of this resistance soon. 

Currently BNB is coming into some resistance, with the W level at 37 being the most significant. I would be looking to purchase BNB as long as it continues to hold its primary uptrend. As for specific support, I am watching the two W levels at 34.35 and 33.21. If we see a break below these levels, there is still a robust M support that would need to be broken for me to flip bearish. Overall, BNB seems to be one of the ALTs outperforming.


De-Fi Perp:

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This index is currently re-testing its triple top area, a considerable level of W support at 2600. A break above this level and a bullish re-test of the weekly level could be a nice long entry. A confirmed breakout can easily send DEFI into its next significant W level at 3000

I am not explicitly looking for entries on this index, as I am long individual De-Fi "Blue-Chips." Overall a consolidation on BTC could bid up De-Fi, so I would keep an eye out on these markets.


Everybody Loves: SUSHI

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SUSHI is yet again my pick for the week. I see a very similar fractal forming for those of you who can spot it. I typically don't trade using these things, but it fits on top of my traditional TA. My first entry was off of the funnel's support, and the second is the breakout and re-test of the bull flag. Small white circles mark my entrances. Overall this is a typical pattern I trade, the breakout and resumption of a bull flag in a strong trending market. Let's keep an eye on this one!


BSC Recap


A bit of a blood bath to be had for the THUGS.Fi farming tokens. With the GUNS tapering emissions off DRUGS rewards, DRUGS price has been affected. This is most likely attributed to the decrease in yields. Following DRUGS, GUNS has seen a decent correction but remains one of my top picks for farming in the BSC. The current GUNS/BNB pool on Beefy.Fi provides users with a .43% daily yield. That being said, the THUGs token has been holding up very well, almost seeing double-digit gains this week.

Overall the real star of the week is JetFuel.Fi. This has been a top pick for many and has seen continuous growth. FUEL is slowly beginning to be one of the BSC "giants," especially as we await vaults' imminent release. This name should be on everybody's radar at this point, with yields on Beefy.Fi clocking over 2% daily for FUEL/BNB LP's.

The BSC does not slow down, ever, it seems! With that, happy New Year to all, and thank you for reading!


Be sure to check out the next release of this weekly series on 1/4/21. I would greatly appreciate all and any feedback to continue improving this content and my trading abilities.

Feel free to reach out on Twitter!

For those looking to get started trading, here are my referral links to exchanges I prefer (You will also get a 5% discount on trading fees):

FTX

Binance

It is still crucial that individuals make financial decisions based on their behalf or consult a professional financial advisor at the end of the day.


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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.