ETHUSD Update: 334 resistance has been taken out, but there is no follow through and the current up swing is not performing as expected, prompting me to consider it an extension of the minor corrective wave.
First let's get into what is going on with the levels. The minor resistance zone 324 to 334 (,618 of previous bear swing) has been slowly compromised. The problem is the lack of momentum. When price pushed above 334, it should have attracted more buyers and momentum should follow. Instead price went no where which is not a bullish sign.
I am bullish in general, and I am still waiting for the pull back that I wrote about in previous reports. My plan is very simple: IF price retraces to the 306 to 295 support area (.618 of current bullish swing), and it can show a reversal pattern on a smaller time frame, then I will get back in. Keep in mind that I am flexible, and willing to get in sooner IF I see a compelling formation, but there is nothing to write about. If price just goes without me, I don't mind, it won't be the first time. I have lost more money because of the fear of missing out, than by missing out. Waiting is a more profitable strategy, but not a fun one.
In terms of wave count, this market should be in the beginning of the Wave 3 of 5 again, BUT this leg is not acting like a Wave 3 at all. The 334 break should have been awe inspiring and instead was lackluster to put it nicely. Plus Wave 3's are never the shortest wave, and right now when I compare it to the subdegree Wave 1 structure, it is shorter. This behavior leads me to believe the current up swing is nothing more than part of the subdegree Wave 2 correction. Which means there is still potential for a retrace to the support zone that I am interested in.
In summary, this market seems to go in spurts, and again is waiting its turn for the order flow. Price structure continues to be bullish, but the most recent leg up is more likely part of the corrective wave that this market has been in for a few days now. Keep in mind, a rally can appear out of nowhere, and I am okay with missing the move. I prefer to wait for a retrace into the 306 area and see if the market can meet my criteria in order for me to get back in. If I miss it, there will be more opportunities.
One of the key things that we need to consider in crypto markets: "I have lost more money because of the fear of missing out, than by missing out. Waiting is a more profitable strategy, but not a fun one." -- surely a big lesson for everyone out there!
audiocande
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@axdimensions, SO TRUE!!! This needs to be my mantra! Thanks Marc!!
MarcPMarkets
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@audiocande, hehe you're welcome. You can miss out all day long, and still have capital to trade for the next opportunity.
SilentSwinger
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@axdimensions, True I just lost alot on BCH last week
MarcPMarkets
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@danielwijayalim, certainly not an easy market.
SilentSwinger
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@MarcPMarkets, Hi Marc do you have any channel to teach us how to diversify our investment in cryptocurrency.
MarcPMarkets
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@axdimensions, yeah I paid to learn that lesson. People who think of missing out as a loss, have yet to pay.
axdimensions
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@MarcPMarkets, yep - agreed. Btw, any plans to cover BCHUSD? It appeared to be in healthy consolidation last week but looks like we would need more correction before another big bullish move.
oh92
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I like that. "I have lost more money because of the fear of missing out, than by missing out."
MarcPMarkets
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@oh92, thank you, it cost me a ton of money to come up with that quote. Hehe.