Monday Market Recap With GoonTrades (MMR:6 1/11/21)

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
Greg Gotsis
on
January 10, 2021
Category:
MMR

MMR #5 Recap

Good Morning! Bit of a bloody Monday on our hands. After putting in all-time highs (ATH’s) at 41.5k yesterday, BTC is now trading around 32k, putting us just around a 20% drawdown. So what does this mean? First off, let’s take a look at my LTC trade from last week.

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As per my strategy, I continued to add to my position while keeping my risk defined. I took a small bit of profit near the 180 resistance but was stopped out of most of my position. Reflecting back, I left a bit too much on the table, which is due to me over positioning in this trade. Overall it wasn’t a losing trade, but I gave back a majority of profits. It happens, onto this week!

Disclaimer: After a climax event like this, markets are highly uncertain, and I wouldn’t be surprised to see a volatility contraction.


King BTC

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We’ve arrived, the first drawdown of the bull market. For those who missed “cheap” BTC, which I consider below 20k, this may be the next best thing. There is no arguing BTC’s bullish nature, and this is solely a wave of profit-taking. It is honestly very healthy for an asset, BTC specifically, to correct 20%-30% after the parabolic run it has undergone in the previous months.

So actual key levels, as for support levels, I am watching 33k, 32k, and 29k. We are currently into a large area of support, where we have seen a large number of buyers. I am not looking for any shorts here, but this is the last place I will be looking to stack sats in this cycle. Overall after a correction like this, the market may very well consolidate for a couple of weeks or even months. On the contrary, a bull-market is typically not going to wait for you to get the “cheap” price you want.


Future of Finance: ETH

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As for BTC I am also an Ethereum buyer at these critical supports: 980 and 875. ETH also saw a rapid acceleration to its previous ATH’s, where it found resistance at 1350. Due to the crypto-sectors’ bullish nature, I am looking to buy most coins following this climatic sell-off.

As for traders, this scenario does not fit into my strategy as I look to play trend continuation versus dip buy and other types of systems. I will still buy at very crucial levels, but I am looking to adhere to my strategy; it is never wrong to take a step back from the market. This rings especially true in un-favorable market conditions.


BSC Gold: BNB

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 BNB is resting on its primary uptrend as well as a substantial level of weekly support at 37. This looks like a decent long trigger, which fits into my strategy. I am not the biggest fan of the R:R profile as I would ideally like my stop below the 35 W level and the two previous pivots. Due to the stop placement, I would not take a trade with a full position size, especially with the high levels of uncertainty.

BNB looks very bullish as it has created new ATH’s and is now retesting its previous top. This is typically a point where investors would look to purchase a breakout and retest of previous ATH.


Bonus Chart: FTX DeFi Perp

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Ethereum based De-Fi “blue chips” also saw a start correction with the rest of the markets. DEFI is currently retesting its primary uptrend as well as a critical M support at 3375. This is a buy trigger, providing a well-defined R:R for those who place their stop below 3094. Overall, crypto is seeing corrections towards healthy support levels, both for swing trading and on a macro investing scale. De-Fi is still mainly on my radar as the space continues to innovate while providing groundbreaking use-cases. 


Concluding Thoughts:

I’ve opted to keep this installment short due to the market’s uncertainty as well as the large correlation between most crypto assets. Overall I see this as bullish selling or profit-taking. As we’ve seen, a plethora of coins have punched into price discovery; the market sentiment is overwhelmingly bullish. This is not the time to sell. For those unfamiliar, 30% pullbacks were very common in the last bull-market cycle, so this was to be expected in some sense.

All you trades out there, let this serve as a warning ALWAYS to have a hard stop. At least, this is a rule I’ve set in place to protect myself from these events.

Be sure to check out the next release of this weekly series on 1/18/21. 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. None of this content is financial advice.

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Greg Gotsis

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.

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