Trading Watchlist:
1. BTC
As we can see above, BTC declined strongly as predicted by the diagonal trendline, and the daily timeframe Stochastic RSI:
Key Learning Point:
- Similar to the weekly timeframe, a sharp decline on the daily timeframe Stochastic RSI from the overbought position will be a good sign that the price action is likely to fall strongly…
Especially when coupled with a good possibility of the price action and the lagging span breaking down below a 4 hour timeframe diagonal trendline.
And, the presence of a reversal bearish candle on the daily timeframe.
Intriguingly, the SOXX continued to rise today as anticipated, but BTC decided to fall instead.
This raises the question as to whether BTC is now acting as a lead indicator of the broader market, suggesting that the broader market is due to decline greatly in the next few days or so?
2. SOXX
Keeping in mind that SOXX is continuing to rise strongly, this raises the possibility the BTC will cut short its decline and start surging to the upside in due course.
3. LINKUSDT
In light of BTC’s strong fall, LINKUSDT declined greatly, experiencing about a 10% drop.
Nonetheless, the reality is that unless I am certain which direction BTC is going to move, I will stay out of a LINKUSDT trade.
4. GLOBAL L – still ranging sideways.
5. XAUUSD – Gold has surged to the upside along with technology stock (SOXX), which is surprising because usually have an inverse relationship.
This seems to suggest to me that there may have been some negative news in regard to the crypto market?
Next Action
- Continue to monitor the price action of BTC every 4 hours to keep on accelerating your trading ability and experience.
- Continue to monitor the SOXX everyday to improve your intermarket analysis.
