Top 6 Cryptocurrencies to Trade Now: Price Action Analysis
July 13, 2022
Hello everyone, this is Richard, a.k.a theSignalyst and in this article we are going to focus on 6 Cryptocurrencies that I am keeping an eye on lately and planning to invest in.
First, let’s start with a quick market overview.
Crypto Market Overview
Most altcoins have been stuck inside a range for the past couple of weeks, following BTC price action.
Cryptocurrency Market Heatmap | Source: Coin360
Fear and Greed Index Signals “Extreme Fear”, Bulls Looming to Buy
Fear & Greed Index | Source: Alternative
Extreme Fear to me is a signal to “look” for buy setups. As the old famous saying: “the time to buy is when there’s blood in the streets.” ~ Nathan Rothschild
But of course, it wouldn’t be wise to jump in blindly in a bearish market. Instead, we will be waiting for the bulls to take over.
1- Bitcoin (BTC/USDT) Analysis on KuCoin Chart
We are overall bearish from a long-term perspective trading inside the big dashed channel in black.
Inside the black channel, we had the first impulse in red, then a correction in blue, and we are currently inside the second impulse movement (red channel).
BTC/USDT Chart on the Daily Timeframe | Source: KuCoin
Inside the impulse movement in red, we can see three phases, which we can compare to the first red channel.
We had our two impulse movements downward and two consolidations in gray. we are currently in the third gray consolidation.
If History Repeats Itself, we still need a break below the third gray consolidation downward, to find support around the 10k-12k weekly demand for the next blue correction to start.
The bulls would invalidate this scenario if we break above the upper red trendline, in this case we would have a premature / early correction.
2- Ethereum (ETH/USDT) Analysis on KuCoin Chart
The picture is self-explanatory.
ETH/USDT Chart on the Weekly & Daily Timeframe | Source: KuCoin
ETH is still technically overall bullish trading inside the brown channel. and it is currently sitting around the blue floor 3000 and lower brown trendline, so we will be expecting a bullish reversal from here. (of course we need to zoom in to lower timeframes and look for buy setups to confirm the shift in momentum)
Unless the blue floor / support is broken downward, then our green zone 2500 would be the next floor and so on…
Which scenario do you think is more likely to happen? Which floor is more likely to hold?
3- Kucoin (KCS/USDT) Analysis on KuCoin Chart
WEEKLY: Left Chart
KCS broke below our 10.0 support zone so we have got two possible scenarios now.
KCS/USDT Chart on the Weekly & Daily Timeframe | Source: KuCoin
H1: Right Chart
Scenario 1: For the bulls to take over again and reclaim the support, we need a break above the 10.0 and last major high in gray. In this case a movement till the upper resistance 15.0 would be expected.
Scenario 2: Meanwhile, until the bulls take over as per scenario 1, the bears would be in control trading inside the red wedge pattern and a movement lower will be expected till the next support 5.0 – 7.0
4- Algorand (ALGO/USDT) Analysis on KuCoin Chart
WEEKLY: Left Chart
ALGO is approaching a strong support and demand zone so we will be looking for buy setups on lower timeframes.
ALGO/USDT Chart on the Weekly & Daily Timeframe | Source: KuCoin
H4: Right Chart
ALGO formed a valid channel in red but it is not ready to go yet. For the bulls to take over, we need a break above the previous high.
Trigger => Waiting for a momentum candle close above the last high in gray to buy.
Meanwhile, until the buy is activated, ALGO can still trade lower inside the blue support zone .
5- Polygon (MATIC/USDT) Analysis on KuCoin Chart
WEEKLY: Left Chart
MATIC is approaching a demand zone so we will be looking for buy setups on lower timeframes.
MATIC/USDT Chart on the Weekly & Daily Timeframe | Source: KuCoin
H4: Right Chart
MATIC is forming a channel in brown but the upper trendline is not valid yet. So we will be waiting for a third swing to form around it to consider it our trigger swing. (projection in purple)
Trigger => Waiting for that third swing high to form then buy after a momentum candle close above it. (gray area)
Meanwhile, until the buy is activated, MATIC can still trade lower inside the demand or even breaks it downward.
6- Chainlink (LINK/USDT) Analysis on KuCoin Chart
LINK is approaching support in green, so we will be looking for buy setups.
LINK/USDT Chart on the Weekly & Daily Timeframe | Source: KuCoin
on DAILY: LINK is forming a wedge pattern in blue but the upper trendline is not valid yet, so we are waiting for a new swing high to form around it to consider it our trigger swing. (projection in purple)
Trigger => Waiting for that swing to form and then buy after a momentum candle close above it (gray zone)
Meanwhile, until the buy is activated, LINK would be overall bearish can still trade lower inside the horizontal support in green.
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Hope you find this article useful.
“All Strategies Are Good; If Managed Properly!”