Monday Market Recap With GoonTrades (MMR:9 2/1/21)

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 31, 2021
Category:
MMR

MMR #8 Recap

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On last week's MMR, BTC was still consolidating under the W level at 35,700 and its primary downtrend. This warranted no type of trade according to my strategy as it seems BTC was coiling up and ready to make a move, potentially breaking to the upside or downside. My base thesis was a break to the upside, which was validated after some sideways consolidation on BTC and then of the primary downtrend. Overall, it is essential to be patient when setups don't show themselves as it increases the number of high expected value trades. Enough about last week; let's see what BTC is poised to do this week.


King BTC

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BTC has broken above the primary down-trend I was watching and is currently retesting the breakout point in confluence with the M level at ~33k. This trade is a classic breakout and retest scenario, which warrants a long in my strategy. While the setup follows my plan perfectly, I am not fond of the areas where I can set my stop. Ideally, a stop right below 29k would be the best place to respect structure, as it has held for two tests. With a stop that large, the issue is that it drastically reduces the R:R ratio, making the trade not worth it for me. Overall, BTC is in a favorable position technically, but my trades this week are focused on ALTs as my base case is that BTC continues to consolidate in this range, between 30k and 40k.


DeFi Hub: ETH

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I was recently long ETH looking for a break above the 1500 ATH resistance. After breaking below the ATH W Close, I trimmed my position dramatically as ETH put in a triple top. ETH continues its rising wedge consolidation, as it rests on the primary trend line currently. I am extremely bullish on ETH, a break and retest of the ATH W Close, specifically a break of 1500, could set a rapid move in motion up to ~2k. In turn, ETH will continue its rally higher, currently lagging behind BTC's break of ATH's as the De-Fi craze continues to rage onward.


DeFi Bluechip: SNX

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I continue to maintain my bullish posture on SNX as it attempts to break out into price discovery. I am currently watching the breakout of the small downtrend, which SNX is now testing. This is also in little confluence with the primary uptrend I am watching. Overall I have a tight invalidation on this trade, as we are into W resistance at 17.5. If SNX can't break above this level, I will be looking to re-buy off the W level at ~15.5. In summary, SNX maintains its bullish posture, looking to break back into the ATH price range.


BSC Mania: CAKE, BIFI, AUTO

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For me, the technical have now exited the room on this parabolic rally that CAKE is undergoing. This name is now up over 400% in the past month or so. This is displaying a massive influx of buyers and capital entering the BSC, with many other names rallying hard, especially yield optimizers.

Unfortunately, I currently do not have access to better charts for the BSC, but these moves are too large to sweep under the rug. BIFI has experienced explosive parabolic price action, finding itself up over 1000%, from 70 dollars to 950 in less than a months' worth of time.

On top of that, other yield optimizers such as AUTO and FUEL have followed BIFI, also experiencing rallies upwards of 100%. It seems the BSC is continuing to heat up as more users are attracted to yield optimizers and AMM's.


Concluding Thoughts:

Overall, crypto markets have continued to display the explosive growth that comes with a bull market. As BTC continues to consolidate, De-Fi plays are continuing to make legs higher, both on Ethereum and the BSC. Specifically, we have seen some parabolic growth on BSC tokens, which corresponds with the growth of the entire chain. Things are beginning to heat up, and I look forward to the continued adoption of De-Fi, specifically on the BSC. As for the markets, remember to be patient and risk capital accordingly!


Be sure to check out the next release of this weekly series on 2/8/21. 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.