Hello Traders, here is my analysis for BTCUSD.
I want to start by saying... Hang in there everyone and don't give up.
- The past few days have been unprecedented in a lot of ways for Crypto, specifically BTC and LUNA.
- Personally I lost a massive amount of money on LUNA. I had a large long position that was liquidated and I also had a portion of my money in UST which I lost as well. In attempts to keep my LUNA position from being liquidated I had to buy more LUNA on 3 separate occasions to lower my liquidation price, ultimately I was liquidated.
- In total I lost nearly 30% of my portfolio between LUNA and UST.
This whole situation sucks and a lot of people lost an incredible amount of money.
- If you're unfamiliar with how this happened, the short of it is this:
- LUNA has a stable coin backed by BTC called UST.
- The stable coin became unpegged, panic ensued and people stared selling in mass driving down the price of UST.
- LUNA had to sell their BTC to bring the UST price back up. This also drove the price of BTC down.
- As of today LUNA is down 85% since a couple days ago.
So if you had a position in LUNA I feel for you. It's sad how many people were affected by no fault of their own.
On to BTC
This is going to be short. ***One thing to pay attention to is the releasing of the CPI number at 8:30a.m.
- If the CPI number is better than expected, the market will rally. If it's worse... well it's going to be another painful day.
- BTC tagged major support all the way down just below $30K. Honestly I wasn't expecting that to happen so quick, but with the whole LUNA situation it was the perfect storm.
- On a positive note, BTC is holding major support very well.
- If the CPI number is good, I'm expecting for BTC to get a nice bounce.
BTC Short Term Targets
- The 1st target I'm eyeing for BTC is at $34.4K. I think this will be easy for BTC to hit on a bounce.
- The 2nd target is at $37.5K. This would be the best case scenario and is a lower probability move.
- The highest I think BTC could go before getting rejected and trending lower is the $37.5K level. So this means I do not think BTC will go much higher than that for the coming months.
- After BTC gets rejected from resistance it will trend back to the $29K zone. This will be a massive test of support, I don't think it will hold on this retest and will fall below.
- What will follow is another massive sell off like we saw the past few days.
Summary
- BTC should bounce
- 1st target $34.4K
- 2nd target $37.5K
- BTC will get rejected, then trend lower and break $29K support
- Followed by another large sell off
***On a side note*** I'm not sure how active I'll be this week. I lost a lot of money yesterday and need to take some time to figure things out. I'll try to post if I can but I will be back.
Thanks everyone and best of luck trading!
I want to start by saying... Hang in there everyone and don't give up.
- The past few days have been unprecedented in a lot of ways for Crypto, specifically BTC and LUNA.
- Personally I lost a massive amount of money on LUNA. I had a large long position that was liquidated and I also had a portion of my money in UST which I lost as well. In attempts to keep my LUNA position from being liquidated I had to buy more LUNA on 3 separate occasions to lower my liquidation price, ultimately I was liquidated.
- In total I lost nearly 30% of my portfolio between LUNA and UST.
This whole situation sucks and a lot of people lost an incredible amount of money.
- If you're unfamiliar with how this happened, the short of it is this:
- LUNA has a stable coin backed by BTC called UST.
- The stable coin became unpegged, panic ensued and people stared selling in mass driving down the price of UST.
- LUNA had to sell their BTC to bring the UST price back up. This also drove the price of BTC down.
- As of today LUNA is down 85% since a couple days ago.
So if you had a position in LUNA I feel for you. It's sad how many people were affected by no fault of their own.
On to BTC
This is going to be short. ***One thing to pay attention to is the releasing of the CPI number at 8:30a.m.
- If the CPI number is better than expected, the market will rally. If it's worse... well it's going to be another painful day.
- BTC tagged major support all the way down just below $30K. Honestly I wasn't expecting that to happen so quick, but with the whole LUNA situation it was the perfect storm.
- On a positive note, BTC is holding major support very well.
- If the CPI number is good, I'm expecting for BTC to get a nice bounce.
BTC Short Term Targets
- The 1st target I'm eyeing for BTC is at $34.4K. I think this will be easy for BTC to hit on a bounce.
- The 2nd target is at $37.5K. This would be the best case scenario and is a lower probability move.
- The highest I think BTC could go before getting rejected and trending lower is the $37.5K level. So this means I do not think BTC will go much higher than that for the coming months.
- After BTC gets rejected from resistance it will trend back to the $29K zone. This will be a massive test of support, I don't think it will hold on this retest and will fall below.
- What will follow is another massive sell off like we saw the past few days.
Summary
- BTC should bounce
- 1st target $34.4K
- 2nd target $37.5K
- BTC will get rejected, then trend lower and break $29K support
- Followed by another large sell off
***On a side note*** I'm not sure how active I'll be this week. I lost a lot of money yesterday and need to take some time to figure things out. I'll try to post if I can but I will be back.
Thanks everyone and best of luck trading!