10.9.2020 Update (Fri)
The big picture on the daily time frames
Not much has changed. BTC remains in a bullish trend with the active seller group still selling in profit, which means buying the dips will still be the priority. Strong support below at 10.3-10.5k. The next dip buying opportunity will likely coincide with a “decr. supply” alert. We’ve got questions recently regarding what to do if a bearish November is coming. The answer is be bullish until proven otherwise. Almost every dip buying opportunity will coincide with the potential of switching to a bearish trend. However, if one buys every such scenario, and gets stopped out on the last one (the one we actually switch to a bear trend), the win rate would be above 60%, with more potential return compared to potential loss on EVERY trade.
The ever changing battlefields on the hourly time frames
Sentiment neutral to overly bullish across exchanges, which is a bearish sign. Technicals similar to BTC. Retracement needed in the short-term. 1HR- RSIs loosing strength, and meeting resistance at $352. Could have another wave up afterwards. Alts lag behind BTC, and generally have larger upward momentums after BTC wave 3s. Whether ETH/alts have another bullish push today really depends on the structure of the current retracement (triangle/flat – which takes longer, or zigzag – which takes shorter amount of time). The key is watching out for 5min RSI. Once the 5min RSI holds support at both MAs and the key 40 lvl (after bullish div), potential wave 5’s coming. Support at $344 – $346.
NEUTRAL to bullish
As mentioned yesterday, BCH remains the most bullish out of the five coins. Sentiment mixed across exchanges, which is very different from the bullish bias on the other coins and indicates further bullish momentum. Open interest is high for BCH, which means if you are a day trader, you should trade BCH over BTC, ETH, XRP, LTC this week. Likely another wave to the upside.