Monday Market Recap With GoonTrades (MMR:8 1/25/21)

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
Goon Trades
on
January 24, 2021
Category:
MMR

MMR #7 Recap

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I was quite bullish on SNX last week, entering on a breakout and retest of a bull-flag. I like to trade this pattern, especially with the inherent +EV that comes with longing in a bull-market. The pattern ended up failing, and my main mistake here was to add to the position as my pattern became invalidated, setting in lower highs.

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Overall, SNX had a breakout failure, shook out many traders, and now looks like it is ready to go higher into price discovery. Currently, SNX is close to offering an entry off the D level at 16. This trade creates a lovely R:R profile when placing a stop-loss right below 14.


King BTC

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BTC has been respecting the primary downtrend set in place by the bearish retest of 40,000. Currently, BTC has protected its lows of 29k, and it’s attempting to challenge the downtrend once again. Technically this could warrant a short, but granted the W level of support at 32,000 and the bullish market conditions, it does not seem like a bet worth taking.

As for a BTC long entry, I am looking for a breakout of the downtrend and a bullish retest on the confluence of the downtrend and the W level at ~35,000. Overall, BTC is just consolidating after a 100% move off of all-time highs; this is to be expected. My default thesis here is that BTC creates a range between 32,000 and 40,000, allowing money to flow into ALTS until BTC is ready to break back towards the upside. The key resistance to be watching is the even 35,000 in confluence with the primary downtrend.


Future of Finance: ETH

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ETH has been outperforming BTC for the past three weeks, and it seems poised to continue. ETH has built some significant market structures creating lower lows and higher highs while breaking into price discovery. This is extremely bullish considering BTC is 100% above its 2018 ATH’s and now ETH is just breaking above them. Currently, I am not looking to position into more ETH as it is into resistance, but a bullish retest of the ATH W close could grant an excellent entry.

Overall, ETH maintains an extremely bullish posture as it hosts the De-Fi boom on its back. I typically don’t give out long-term price targets, but $2000 ETH seems just around the corner. This is one of my spot-heavy bags for the remainder of the bull market.


BSCs’ Gold: BNB

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BNB is currently testing significant support at its D 43.85 level and round resistance at 45. I am not looking for any entries on BNB until there is a bullish retest of these levels. Overall, BNB seems very solid as a spotted bag, but there is plenty of other market volatility that I am focused on. This does not mean that BNB shouldn’t be on your close watchlist as BNB is also tapping into price discovery, and its true bull-market potential is still untapped.


Leading AMM: CAKE

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CAKE has now rallied over 150% in less than two weeks, displaying BSC De-Fis’ bullishness. As this chart is now considered parabolic in my book, it is a bit harder to perform technical analysis.  The last entry that CAKE offered was a test of its M level around 1.00. The key for entering trades that have gone parabolic is making sure that you buy above the parabolic trendline and have your stop set right below the trendline and a substantial area of support. This allows you to enter asymmetric R:R trades as you are protecting the downside while also attempting to capture more of the parabolic rally.

In summary, CAKE remains extremely bullish as the team continues to innovate, promising on the developments listed in their roadmap. PancakeSwap has continued to display why it maintains the crown as the largest AMM on the BSC.


BSC OG’s: BAKE

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BAKE has also experienced some explosive price action recently, up about 67% from last week. Currently, BAKE offers a bit of a “high-risk” entry of a healthy level of support as well as a small confluence of the parabolic trendline. 

Overall, BakerySwap has continued innovation on the BSC, and the team has rooted itself into the BSC ecosystem. As De-Fi and the BSC continue to expand rapidly, this is a name we will hear more and more frequently.


Markets Pulse

After holding the 29,000 support on BTC, I maintain a very bullish posture on the market, specifically on ALTS and “Blue-Chip” De-Fi. My base case here is that BTC consolidates in a range for a period (weeks to months), allowing capital to flow into ALT coins. We have already seen an immense impulse higher on many ALT coins, but I think this is just the beginning of this ALT rally.

As for the BSC, the ecosystem is growing ever more traction with names like Beefy.Finance and PancakeSwap beginning to challenge ETH-based De-Fi tokens. There is still an abundant amount of market share to capture on top of the increasing growth, which keeps me overly optimistic for the BSCs’ future. Overall, the BSC is extremely bullish given the De-Fi circumstances and the stimulus that Binance is providing to its ecosystem.


Be sure to check out the next release of this weekly series on 2/1/21. 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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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.