SAMT Blog
Bitcoin: buy the dip!
28. November 2021, by Snezhana Popovska
Technical Analysis, Guest Author Article
Bitcoin was dominating the market and we saw ATH at 69k. Our first target was met. When the resistance becomes support, it’s called polarity. And now we are seeing medium-term correction where Bitcoin is trying to test its support line around 52k. This price lever is also 0.618 Fib retracement level from its last move. I expect the market to hold this price and we can open a long position from there. I would like to add long positions if Bitcoin can get above 56k, but I’d have more conviction if a higher-high above 60k can be achieved. The downside risk is around 47K, the next level of volume of control.
On the second chat are the exchange funding rates. We can see that from Mart to May the funding rates were very high, meaning that lots of people were trading with leverage and buying futures. Now, we can see that the market is washed out of leverage and that the funding rates are very low, which means that this level should be stable.
I remain bullish in the long term if the Bitcoin is above the 50-53k support zone. The macro analysis and the on-chain data are also supporting my view. The correction we saw in May was because of Elon Musk FUD-ing the market and second, because of China banning the crypto. Now, we are seeing massive interest and adoption from people and institutions who are accepting Bitcoin as an asset and diversifying their portfolios.
It's altcoin seasons!
Bitcoin dominance is our next chart. Now the profits are beginning to roll into altcoins. If we see a downward break of this pattern, we can expect another season of altcoins winning the market. Specifically, one segment of altcoins that I am bullish on for a long time is DeFi. DeFi is already a massive multi-billion dollar industry. And experts believe it will soon hit the trillion-dollar mark. If this happens, we will see positively massive gains in the top DeFi cryptos.
I believe we are about to see a sector rotation into the DeFi sector and we can now buy these coins at discounted prices. As technician, I want to spot those undervalued coins that are about to explode where we can see massive gains. We don’t want to buy when the prices are high and enter to late because of FOMO. This is when we want to sell our coins.
These are some of the coins that have been in consolidation for months and now are testing their support zone. If they can hold this support and break out of this consolidation to the upside, we can expect the first target to be their old ATH and second one to make new ATH.
Forbes wrote that Bitcoin could very well hit 100k by the end of the year, and I totally agree. Historically when Bitcoin goes on a massive tear, altcoins aren’t far behind. That’s why I think that right now this could be your “second chance” at transforming your life with crypto gains.
About the author
Snezhana Popovska has been in financial markets for over 14 years and has a very rich experience in the Forein Exchange, Equities, Fixed income and Asset and Liabilities Management. She is the only Individual in Macedonia holding some of the most coveted certificates and charters in the financial Industry. Snezana is a Chartered Market technician (CMT) and a Certified Financial technician (CFTe), International Federation of Technical Analysts. She also possesses an ACI Dealing Certificate and a Certified Investment advisor licence. In her professional career, She is also associated with ACI Macedonia and a member of the Educational Board of ACI Macedonia. She is a keen believer in Financial freedom through financial literacy.
In her career spanning over a decade, She has worked at Major banks such as TTK Bank Ad Skopje and UNI Bank AD Skopje. She is also founder of the company Invest Point.
Snezhana has a love for Technical analysis, besides Mountain biking and Yoga, and believes the behavioural and psychological aspects of trading and investing can be managed with proper education and systematic trading. Snezana is frequently quoted in various leading magazines with her articles and insights on financial markets.
Disclaimer: All methods, techniques, charts, analysis or results presented in this SAMT Blog are for educational purposes only. The information provided should not be construed in any way as a recommendation to buy or sell any financial instrument. You should always consult with your licensed financial advisor and tax advisor to determine the suitability of any investment to your particular financial situation. The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity. SAMT and its affiliates, directors or agents will not be held liable or responsible for your investment decisions.
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Further it should not be assumed that any methods, techniques or indicators presented will be profitable or that they will not result in losses. Past results of any individual trader or trading system presented are not indicative of future returns by that trader or system, and are not indicative of future returns which may or may not be realized by you.
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