HUGE Crypto Bounce TRAP! (Make Money in a Bitcoin Bear Market)
There are a lot of traps when it comes to market lows and trying to trade the bounce. So lets take a look at that in todays. Video smash up the likes, if you havent already subscribe to the channel there are 70 of you subscribed, leaves 30 not subscribed. Make sure you do that with that bell notification icon turned on, so you can stay up to date with the best cryptocurrency and real estate cycle updates here on youtube. Thanks to the channel sponsored by bit. Weve also got the world series of trading going on at the moment, so join our team over on buyback, crypto, hobo search for that use. The links in the top of the video description to get your thousands of dollars of sign up bonuses plus extra bonuses. If you join our trading team over there now, this is for experienced traders so make sure you have your plans ready to go for when this commences links are all in the video description down below. But if you just want a new exchange over there to spread out your risk check out buybit, there is spot trading and interest earning features on that app. All right lets kick it off with the bitcoin chart that i have right here and then have a look at some of the altcoins that i am tracking now bitcoin has been moving up for the last three and a half days. This is our swing trading tool.
So our tia, the investor accelerator swing trading tool that ive got on the chart here ill also leave a link to that in the video description. But essentially we can turn on the trend of the market so were going to our settings. We can turn show trend. Turn it on turn it off but ill leave it on just for this example here, because what we want to find out is what is happening in the market. What can we do to better prepare ourselves for any of the market action coming next and how can we stay in front of it? You know were looking at the trend here. The trend is red, the trend is down and what ive got here are time frames of how much the trend has bounced in the past, and we can see a really clear pattern when it comes to colors of the trend now were in a red trend. This is a downtrend at the moment. This is just a daily trend as well, and, of course, we go on to a weekly that gives us a better idea. A nice cleaner picture of the macro move, but just for arguments sake were going to look at the daily trend on this chart and you can see the moves of the uptrend moves three days five days three days, and this is starting from some black areas, which Are uncertain and then we go into the reds here and the greens, so in terms of the red, it does take a little bit of work to get back into the green back into the uptrend.
Now, if the market is trending up in the green, you get much longer moves, much more consistent moves and the moves last longer, but they also have bigger ranges to the upside. So those things will work a lot nicer when it comes to the trading plans and what we can expect for the market action right now we are still in a red zone, meaning the trend is down and, of course, we have to flip from red to green Or at least uncertain and then into a green and uptrend in order to get some higher prices, you know to go go long in the market, and for that to happen, it can take some time now. The trades themselves to get into that green may be a little more risky, so the first trap people do its very simple, probably heard it a million times before is not to is they dont use stop losses, so i wont bang on about that, because i also Get sick of hearing about put a stop loss in put a stop loss in, but where do you put a stop loss? People are trying to figure that out and they usually get stopped out. You can see theres a fair bit of market action under this level. So if we take a line across here, its just under the 20k, but it depends on how much leverage youre using on this particular trade and people do hear about liquidations all the time they dont understand what it is or whether it means that their entire account Is wiped out thats, not true, it depends on how much you are risking per trade.
If you have a thousand dollar account and youre risking fifty dollars, a trade, then thats all youll get liquidated 10 000 youre risking 500 bucks. Thats all youll get liquidated all right. So, just to understand that, in terms of some other stop losses that could be further away. Well then, we can use the lows here because its going to be theres going to be less risk on the market coming all the way back down than it is going just a little way down and then getting stopped out. So weve also got the zones beneath 17 and a half k so thats what were looking for with the market action next now. The really big important part is the timing of the trade. This is. This is huge. The timing people think it cant be done, but just take a look back at what weve seen in the market already now. The moves up well forget about the pattern in the background at the moment, just to get an idea of what is happening with how long the moves are lasting to the upside weve already been going up for three days now. So take it from the low to the top of the swing three days. If this day goes above, yesterdays high, then well be at four days. Lets have a look at what happened in the past. Well, weve got three days up five days up, not including these, because these are basically in a range and if i dont include it thats why weve got about three days up to that peak before we went sideways, we got three days up now.
This is a different trend, we had a stopping volume and then we started to turn around and move again. So you can see from these multiple moves recently, one two, three four that weve only gone up for about three to five days. Right now we are in our third day. So if i was looking to make a trade, i would be then waiting for confirmation to see where the swing low comes in, whether its higher than the previous low thats going. To give me some strength to what might come to the upside. And then i would wait for some confirmation for the market to break some of these tops. Meanwhile, keeping my stop nice and close so that i dont get wrecked in the market waiting for it to come up and then come all the way back down because were still in a downtrend at the end of the day. So three to five days, weve gone up for three. The likelihood of it continuing on is a lot less because we can see what the market has done in the past, the the buyers and the sellers uh are starting to get worn out. Well, the buyers are starting to get worn out and the sellers are starting to overtake the market. You can see the moves are a little smaller. Now the sellers can lose and the buyers can take control here by just pushing that market up coming in and giving us something extra by taking out some of these resistance levels above the market.
But i want to take this a step further and just go back and have a look at how it works in the past when their trend is up because eventually were going to turn up and weve got to be aware of the traps. So this is kind of a sideways area with a slight bias to the upside we can see. There are some moves in here from the bottom to the top, even though some other swings 17 days, but within this move we have eight days to that first peak before it corrected. But then just this first move is two bars. One day reversal. We probably had another couple of bars two day reversal, another two days up two days down, so there was a lot of chopping and changing around that two day mark to get us to eight days up before the market then took off for about six days. One two three, four: five, six into that peak of the seventh day for that final run. Next move here is six bars with a one day correction. So youve got one two three up correction, one two three up hes starting to see the pattern here: weve got a few days in the market of the market moving. I can use this one two days up and then we had the reversal one. Two three days, two day reversal two days kind of up very weak. We then got a reversal, then we went on to that final run, and this was very similar to what happened.
The uh the two times before that sure this was shorter, but you can see youre in a slightly different scenario of the market. People were still unsure if we were going to dump a lot of people saying bearish, a lot of people are still saying bullish. This was at that time of the uh, the bitcoin conference in miami, so people were still kind of bullish, but eventually that all wore out – and we went on a massive move to the downside. So hopefully you can see. The point here is about three days. Three. Maybe to five or six days to the upside in a clear run before we get that correction. Now, in a in a more bullish move, you can see we get a lot cleaner trends without the swings getting broken or only slightly broken. So that is a good sign for the bulls you can see. We went up for two days, a small little correction here, but it really didnt come down like we saw now, and then we go again for another five six seven days and then a tiny correction. Here of one day, a couple of day: correction, after four days up one two, three three and a half days up and then the correction, then we went into that final top. So the the trap – and the warning here is: yes: there probably will be a bounce weve had pretty good volume, weve managed to close above the old all time high.
So a lot of things are lining up for a good bounce and then weve got to look over into some of the cryptos. Now bitcoin has gone up for three days, so we need to go and check what else is going on in the market as well. But before i do how this happens, why this happens is because we still have things like the wall street cheat sheet and a lot of people will use this and just spread it across the macro view of the market thats. Exactly what i love to use it for as well, but we get these emotions happening on smaller term time frames just as much as we do on the longer term time frames so within the trade itself, and this is where the timing goes wrong for a lot Of new and uh traders, even investors are trying to time um. You know to the t which we dont need to, but within these trades these these three or five days up and then the corrections you get the the same emotions here you know the disbelief, the hope, the recovery, the the depression at the lows, optimism, belief, thrill Euphoria, so you can see its low, then all of a sudden, everyone rushes in because they feel like its ready to go and you get that blow off into the euphoria, its nowhere near the same size as obviously on a macro. But of course, were just looking at the short term stuff here and so then you get the the depression back to the downside in the smaller ranges and thats.
What youll see on if we bring it back to the hourly chart. Youll get the similar sort of moves there. You know the accumulation the depression and then we start to move up into that final top. You can see the complacency, the lower swing top and then anxiety, denial, panic, all the way back down and it rinses and repeats on a much shorter time frame as well. Speaking of time frames, lets move to a macro and look at ethereum as an example. Here in terms of a bounce now weve been down in terms of weeks macro, this is massive put on some colors here, so we have something to look at time frame top to bottom. This has been 11 weeks down in the red, with lower highs and mostly lower lows. The main thing is, the highs have all been lower as well for for my type of analysis. So eventually this has to break now. I said in the intro were looking for. Also, some price targets as well now im choosing this zone if i throw it onto some bars again and on the days this is a significant price range that ethereum has just completed and now were basically trying to bounce back out of that. So in terms of some price targets, i look for the 50 and for ethereum a bounce could lead us towards around 1400 somewhere around that point, maybe a little shorter. Maybe a little more gives us about a 26 so theres something to play with there.
If people are more experienced and theyre going to use some leverage, then you definitely have something to play with in that regard in terms of ethereum and the support and resistance levels, how not to get caught in the traps. Looking at the timing and of course, weve already been up for one two three days so lets see where this correction comes in and if you look closely, we did just break yesterdays low. So we do have a slight correction at the moment and then we need to wait for some confirmation in order to get that trade in that same direction. Keep the stops in play. Ada, on the other hand, has been grinding its way around these lows and really looking like it wants to break out and test some of the upside. So what we want to look for is if there is higher percentage gains to the upside before we hit some critical resistance. Now weve got short term resistance here at about 15 14. So im just looking at these highs. The next tires, which have been hit twice at about 67 cents – that gives us about a 41 42 percent move from where we currently are. So by the time we get some confirmation. The breakout, then theres still more room to run in in ada compared to something like eth. Now you need something that has high volume as well, so that you dont get too much slippage in terms of the major level here for resistance.
You can see the market sat, sat, sat and then broke down. That gives us about 60 percent of a move to the upside, so you can start to see that there is more room to the upside to be trading these than there is to to the downside where you would have to put your stops so that you dont Get creamed and crushed in the market if it was to turn around, so these are looking a little better in terms of trades. Of course, theres no guarantees, but at least the risk to the downside is a lot less and in terms of whats happening in the market. This does seem like what it is building towards and not saying its going to happen tomorrow, but were definitely starting to see that across the board, with the volume coming in on the macro picture, for our bitcoin for ethereum as well, bring it to a week and Have a look at the volume you can see the reasonable volume here compared to the last several months, basically 12 months. This is one of the biggest volume weeks for eth on the bitstamp chart and if we look at a different exchange, coinbase extremely high as well, so just over 12 months, this is one of the highest volumes, which means theres a lot of stopping power that is Coming into the market, and it is attempting to have a turnaround for that bounce move, but you dont want to get caught in the trap and the last one ill look at is solana which a lot of people have been trapped in, especially during this period.
In january february march, remember it very specifically were talking about on the channel on twitter with our members in the investor accelerator. If youre interested link is in the top of the video description we go, there live once a week monday mornings weekly group calls join in. Ask your q and as and understand how to trade and invest now looking at solana, this was clearly a fake out and, and there was a lot of people talking about buying this dip for a trade different story, its a really really good trade and thats. What i think were coming around towards again now this this sort of setup pump to the upside you can get in nice and close. You can have your stops nice and close, reduce that risk and then to the upside youve got a fair bit of ground to cover before you could get rejected at some critical levels. Now to the downside, to the current market action you can see were slightly different. Weve dropped a little bit lower, but the lows were all getting lower and then eventually, it turned around and bursted to the upside. Turning the trend, green thats. What we want to see so were coming down, starting to turn around higher low and were looking for that trend to turn green to the upside from where we currently are to these critical levels about 60 percent. So we got some good upside here to the underside of uh this this previous level before it broke down 80 bucks.
100. 120. So in terms of the trade weve, got to separate these trading short term investing long long, long long term, all right. So there is some room to move if this can get a move on with the trend, turning up and finding some clearer ground breaking through some of these resistance levels, so theres a lot of ifs, but the beauty about it is that its still close enough to The lows to put a stop in to reduce that risk and, of course, todays video is looking at whats coming next in the market, looking at potential traps not to get caught out in the traps and how to stay safe in the market. If you were looking to trade in the overall macro bear market, because some people are looking for ways to understand how to make some money from these markets and thats, why? I would specific specifically be looking at these markets right now and, of course, theres buy a bit if you dont want to trade leverage dont, do it only do it if youre comfortable youve got a plan thats the way id be looking at it check us out. The crypto hobos and the trading group over there for the world series of trading and, of course, as always, smash the likes subscribe to the channel.