Before I begin, this is a speculative call.
That said HOT does appear to be in accumulation here.
The circled area shows tight horizontal price action consolidating on the 0.382 fibonacci retracement. It has not responded with BTC having a powerful rally, and also it doesn't appear to be reacting much to BTC downside so far. This suggests that pressure is building. Tight price bands lead to explosive moves and the fact that price has not reacted to wild BTC movements shows further cause.
It has had an upside fakeout over the last days. This could be interpreted both bullish or bearish but considering that the downside return happened as BTC became bearish, I would guess that this will prove to be a bullish fakeout.
I won't be buying this until BTC looks set to bounce with divergent bullish RSI.
It really depends on how HOT reacts to further BTC downside. If it holds the tight price action or has a downside fakeout with return to the accumulative area then I would guess this will be ready to rock.
This will be a very risky trade if the opportunity comes, but it could be very rewarding. I'm not so much interested in the gainz, just doing my homework really, but I will have a tickle if the chance comes.
Not advice.
That said HOT does appear to be in accumulation here.
The circled area shows tight horizontal price action consolidating on the 0.382 fibonacci retracement. It has not responded with BTC having a powerful rally, and also it doesn't appear to be reacting much to BTC downside so far. This suggests that pressure is building. Tight price bands lead to explosive moves and the fact that price has not reacted to wild BTC movements shows further cause.
It has had an upside fakeout over the last days. This could be interpreted both bullish or bearish but considering that the downside return happened as BTC became bearish, I would guess that this will prove to be a bullish fakeout.
I won't be buying this until BTC looks set to bounce with divergent bullish RSI.
It really depends on how HOT reacts to further BTC downside. If it holds the tight price action or has a downside fakeout with return to the accumulative area then I would guess this will be ready to rock.
This will be a very risky trade if the opportunity comes, but it could be very rewarding. I'm not so much interested in the gainz, just doing my homework really, but I will have a tickle if the chance comes.
Not advice.
Note
I'm not buying on this BTC bounce even if HOT bounces. I'll only buy when BTC is oversold i.e. after a collapse.Note
For those with a high risk tolerance and also are willing to be attentive, this could be a go right here. Fast choppy PA with ascending bottom and contracting pattern and most importantly - increased volume all suggest that an impulse may be coming.For me - I'm more interested in buying longer term swing trades when BTC is at a low point. I had a tickle with alts with BTC high before trying to catch a blow off top, but there are too many permutations to go wrong - its not for me.
But that doesn't mean | can't find and reveal potential setups such as this.
However I'll just be watching and taking notes.
Note
HOT looks to be taking off. I think BTC will probably UT and HOT probably has a clear run here. For an aggressive trader / moonboy this is probably a great setup here.Note
Well HOT did take off and break out from the compressive triangle.However it may have topped here and this is why I'm hesitant trading in these areas.
Other publishers I have seen are full guns blazing that alts in areas like these are a sure thing for an explosive moon mission, but for me it is much more complicated with BTC high and potentially ready to roll over.
Here we see large wicked fakeout tops showing selling pressure at key fibonacci points.
- The 0.618 retracement.
- A 0.618 C wave of an intermediate ABC.
- And a C wave of a 1.618 minor ABC.
Now none of these things show with exact certainty that price will reverse. It could consolidate here and blast off upward, but such confluence is cause for concern and if BTC rolls over then HOT will too.
It could well be that "the effect" of "the cause" - the accumulation area has now concluded at said fibs. If this is the case then this entire upward movement + accumulation area can in total be a primary B wave which will then see a C wave re-establish the dominant trend to the downside which could hit a 1:1 ABC target 0.0023 or is its the more impulsive ABC extension it can hit a 1.618 ABC @ 0.00067.
If you want simple money grab charts I'm probably not your guy - do feel free to move on / unsubscribe and make your way to your next free lunch experience.
Charts are complicated and without real consideration the house always wins.
I hope you may have appreciated the Marc 40/60 arrows nonetheless.
Anyhow I will do as I said and look again on a BTC bounce in previously described conditions. Or if I miss it i miss it, I really dont mind. There will be much better opportunities down the road, but not this year.
Note
HOT looking a bit cold here looks like the C wave completed, but I'll keep watching...Note
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Your FA guru can't read a chart💭
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.