Check out GoonTrades’ latest article to his series “Monday Market Recaps” (MMR). This weekly post will contain his insight on the overall crypto markets and the BSC through technical analysis.
Top of the week! Hope everyone enjoyed this rally we got into price discovery this last week. I was able to capitalize on a few trades last week, a couple I outlined in last week’s MMR. My most extensive trade last week was a swing trade on ETH; the thread can be found on my Twitter, for those curious.
On top of my ETH trade, I entered a BTC long Tuesday night, which I outlined in last week’s MMR; below will be a picture of the setup that I outlined last week.
On this trade, I specifically did not set a concrete take profit (TP) because I was playing this as a breakout into price discovery. I took my entry on the bullish re-test of the Weekly level, setting my stop just below the Daily level at 18.7k.
The Outcome/ BTC Now
I sold most of my position at 21.3k and 22k, which granted me a 2.8 R:R trade. So now what for BTC?
Currently, BTC is insanely bullish since we are in price discovery, and among other factors. When in price discovery, assets typically will behave more volatile because BTC, in this instance, has never been valued this high, causing a large amount of speculation among other factors.
With that being said, I am currently not looking to short BTC; unless the primary parabolic uptrend were to break, a possible entry could be found on the bearish re-test. Overall, this is not a market to short, as we have taken out all-time highs. The best game long-term play here is to Dollar Cost Average (DCA) into BTC
Where can I look for long entries?
BTC offered an entry off the primary uptrend around 22k; other than that, an aggressive entry could be taken off of 22.5K, but I would not have any bid there. Currently, BTC is in no-mans-land. According to my rule-set, I will be sitting on the sidelines for now.
A couple of notes, we have rallied about 100% in two months, a clear sign of the BTC bull market. In 2017/2018, this environment was not uncommon for 20-30% pullbacks in the bull market, which would take us down to 16k. For me, at least, this means I will maintain a bullish posture on BTC, and be looking to DCA on all pullbacks towards the 16k level. It is crucial to understand this, as history doesn’t always repeat itself, but it will most likely rhyme, meaning all BTC investors & trades should be ready for a 30% drawdown and plan for such an event. I will be buying more spot 😊.
Enough about BTC: The BSCs’ Gold: BNB
I unfortunately missed my entry on BNB last week by a dollar or so; it happens. BNB had a great week, rallying about 20% into its weekly resistance and previous all-time highs (ATH’s). Currently, BNB is re-testing its Monthly support level after being rejected by the 35.5 resistance, offering a long entry. BNB looks like it has a lot of strength and provides a 1.71 R:R trade to the first TP. Ideally, a resumption of this level warrants a long in my trading plan.
Keep an eye on BNB; it has proven itself as an explosive token with solid fundamentals.
ETH-based De-Fi “bluechips” also rallied on BTC’s back, with many DEFI/BTC pairs lagging a bit. Hindsight is always 20/20, but the narrative seems to continue building around institutional money onboarding into BTC. As BTC begins to hold or consolidate at these levels, I expect to see strength pour back into these names. ETH-based De-Fi is not bearish by any means, but recently they have not been outperforming when denominating in BTC. De-Fi will be the place to watch if and when we get our true “alt-szn.”
Currently, I am not looking to long most De-Fi plays as they have just broken a bit of their bullish structure. An ideal entry on the index would be off the primary uptrend, around 2.3K, and ultimately some stink bids on the monthly level at 2180, could warrant nice entries. I will be keeping a close eye on these De-Fi markets, as their volatility provides excellent trading setups.
The BSC Giant: CAKE
Technically, CAKE is re-testing its breakout from last week but running into some resistance around .50. This token still looks pretty bullish, considering users who hold this token can also receive about 200% APY in rewards. CAKE is a name I will continue to watch, as it is confirming a breakout and could be poised for a solid move. Overall this trade offers a nice R:R reward, with a nice stop around .3990.
Quick BSC Recap!
BSC tokens have seen explosive gains this week; the current market leaders are FUEL, BIFI, and the Thugs.Fi ecosystem. FUEL and BIFI have both seen rapid growth, competing for a large portion of the BSC market share, as both projects are yield optimizers. Currently, BIFI dominates this sector as FUEL has recently launched, but keep an eye on both. On top of this, the Thugs.Fi ecosystem has been strong holding their way into the BSC, as their DRUGS farming token passes up BAKE, BakerySwaps native token in market cap. On top of this the THUGS and GUNS tokens have also seen a weekly growth in their market cap.
Other names such as BLIQ, NAR, and BAKE saw red weeks, but nothing too substantial. Overall the BSC still has a large portion of untapped market share, as more users enter the network, projects develop, and Binance continues to stimulate the ecosystem.
Be sure to check out the next release of this weekly series on 12/28/20. I would greatly appreciate all and any feedback to continue improving this content and my trading abilities.
Feel free to reach out on Twitter!
For those looking to get started trading, here are my referral links to exchanges I prefer (You will also get a 5% discount on trading fees):
It is still crucial that individuals make financial decisions based on their behalf or consult a professional financial advisor at the end of the day.
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