Entry stage cryptocurrency shopping for: Bitcoin (BTC), Litecoin (LTC), Cardano (ADA), Polygon (MATIC) – UK alternate charges
Above: Bitcoin (BTCUSD) chart
If you’ve watched some of my previous Bitcoin videos this week, you may remember the foldback pattern I placed on the Bitcoin chart. The foldback pattern (not shown) indicates that Bitcoin is at a point where the next swing structure begins – and that’s one swing lower. The key level for Bitcoin at the beginning of the weekend is 33,500. If Bitcoin closes below or stays below 33,500, Bitcoin is in sharp decline. If you look at the blue arrow in the diagram above, you can see that it is angled down and left, following the contour of the volume profile before ending at 27,500. Pay attention to the volume profile – it tells us that Bitcoin is finding it easier to move down than it is up and the lower it moves, the faster the descent will be. 27,500 is the next high volume node to be tested as support.
Above: Litecoin (LTCUSD) chart
It’s been a while since I wrote about Litecoin! There are two primary levels of support that I see and I view both of them as a level to take profits on a short position or to initiate one or more buy limit orders. The first level, at # 1, is the 132 value area. 132 contains a high volume node and the 61.8% Fibonacci retracement. From the current trading level of 155, 132 is a decrease of approximately -15%. The final primary support zone is at # 2 – the 89 range of values. Down at the 89 level lies the mighty 88.6 Fibonacci level along with a high volume node and represents a Fibonacci retracement of -45% from the current close on the chart above.
Above: Polygon (MATICUSD) chart
Polygon’s daily chart shows impending weakness and short-term pressures in the future. The composite index is about to undercut its slowly moving average. The% B is about to cross below 0.2 and the RSI remains above 40 – meaning any dip on the price chart will be sustained. The levels that I identified as the primary support areas haven’t changed much in the past few weeks. The first at # 1 is the 0.80 zone. The high volume knot is the main reason I expect some support there. At # 2 is the 0.37 level. The 0.37 level is represented by the VPOC (Volume Point of Control) and the 50% Fibonacci retracement.
Above: Cardano (ADAUSD) chart
Cardano continues to consolidate between the weekly Tenkan-Sen and Kijun-Sen. All three primary support levels I have identified correspond to a high volume node with major fibonnaci retracement levels. Initial short-term support is at 1.20 (38.2% Fibonacci retracement). The second level of support is a kind of “sneaky” level of support between 0.84 and 0.94. I say sneaky because the time Cardano spent in zone # 2 relative to the size of the high-volume node is very little. The previous tests of 0.84-0.94 were few, but the response was strong. Finally on # 3, the second highest high volume node at the 100% retracement level.
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