Friday Resistance Test: Will the Market Break It?

29.09.2023

Dear traders,

The crypto market is still retesting resistance levels, with the aim of breaking out. Keep a close eye on it.

Jake
TOP Trader

BTC is still struggling with the $27,200 resistance and needs to break through it for a sustained upward push. However, the long-term outlook remains bearish.

ETH is making a bullish move and needs to hold above $1,630 for a bigger upward push. Nevertheless, it requires a substantial increase in buying volume to initiate an upward trend.

XRP is breaking bullish and aiming to break through the $0.54 resistance. Its position remains precarious, and losing the $0.50 support could be concerning.

LINK is showing bullish momentum, but it needs to hold at $7.5 as support for a bigger upward push. On a daily closing basis, it needs to push strongly beyond the overbought line.

SOL is breaking through the $20 resistance but needs an even stronger push upward. However, there is a risk of a bearish continuation.

EOS is consolidating at $0.57 and requires a more significant push to break through the strong $0.60 resistance. Sustaining a price increase still depends on a substantial increase in buying volume.

LTC is still trading and consolidating at $63, with a significant possibility of a breakdown.

The DXY is currently overbought and is now facing strong resistance.

Crypto/stock daily news:

3 LESSONS FROM TRADING THIS WEEK

Last week we tried something new… perpetual futures.

It sounds like something a fortune-teller would shout after looking into a crystal ball, but it just means you’re making a bet on the future price of an asset without buying the asset.

And we made 3 independent bets…

A “speculation” bet. We opened a long position – with 10x leverage – betting the price of Bitcoin would increase.

A “hedging” bet. We opened a short position – with 5x leverage – betting the price of ETH would decrease in the near term.

A “yolo” bet. We opened a position – with 40x leverage – betting the price of Uniswap would increase.

(Side note: if you don’t know what yolo is, here you go. Even if you do, crank that sh*t anyways)

Ok, back to our bets… here’s how things went after a week:

SPECULATION BET: -40%

Bitcoin fell 3.5%, but since we used 10x leverage and paid fees, the hit was harder.

HEDGING BET: +15%

Woo! Some greenery.

YOLO BET: Liquidated.

Yup… we got liquidated… in less than 36 hours…

I’ve had colds that last longer than that…

But hey, that’s why it’s called a “yolo” bet to begin with. It’s super high risk.

And where there are L’s there are lessons:

Implement a “stop loss”. Instead of holding a position until liquidation, you can choose a certain percentage, or dollar amount, that you are willing to lose as a “stop loss”.

Set a “take profit”. This lets you set a specific value or percentage gain. If the price reaches that value, your position gets closed and you take your profits.

Live by the leverage, die by the leverage. The higher the leverage, the lower the margin of error, and the higher the risk of getting liquidated.

Overall, the markets were a tough crowd this week. But it’s OK. It happens.

No need to send us any “hope you’re OK” texts. We’ll bounce back.

And remember: we walk (and stumble) through crypto, so you can run.

Til next week, amigos.

FAST NEWS:

Buenos Aires is launching a blockchain-based digital ID service. It will mainly be used to store marriage and death certificates.

Valkyrie got approval to start buying ETH futures for its existing Bitcoin ETF. It will be the first US ETF to provide exposure to Ether and Bitcoin futures contracts under one wrapper. #history

The SEC has delayed its decision for 4 Bitcoin ETF applications. The applications belonged to BlackRock, Bitwise, Invesco Galaxy Digital, and Valkyrie.

Sam Bankman-Fried’s trial schedule has been released. Get your popcorn ready, the trial will begin on October 3.

Ripple has backed out of its acquisition of Fortress Labs. Ripple pulled out the Uno Reverse card at the last second…