Navigating the current crypto Bull Run can be overwhelming, with numerous altcoins vying for attention. In this comprehensive blog, Deron Wagner, a seasoned trader with over two decades of expertise, guides you through a foolproof method to identify the cream of the crop in the crypto world. We’ll delve into the essential steps to locate lower-risk buy points among elite altcoins, complete with chart breakdowns for potential entry points. Additionally, stay tuned for an exclusive bonus at the end, where we’ll explore potential lower-risk entry points for Bitcoin. Let’s cut through the noise and enhance your crypto trading skills. Don’t forget to hit that like button, subscribe, and let’s dive into the charts together.
Understanding the Big Picture
To begin our journey into mastering crypto swing trading, we must first comprehend the big picture of the overall market. Deron sets up the Trading View platform to analyze the weekly and daily charts of Bitcoin and Ethereum, the benchmarks of the crypto world. This multi-timeframe approach provides a bird’s eye view on the left, showcasing the broader trend, while the right side focuses on shorter-term perspectives.
As we step into 2024, Bitcoin displays a three-month uptrend, with a period of sideways consolidation leading to the new year. The anticipation of the SEC’s decision on Bitcoin ETFs prompts a rally, but Deron wisely cautions against the common “buy the rumor, sell the news” phenomenon. Preparing for potential negative reactions after news events is crucial, and in this case, it turns out to be a prudent decision to exit positions ahead of the SEC announcement.
Key Levels and Moving Averages
The analysis then delves into the significance of the 50-day moving average (MA) as a pivotal level. Deron explains how breaking below the 50-day MA can indicate an intermediate-term trend reversal, while trading above it confirms an uptrend. The concept of volatility contraction leading to expansion is introduced, highlighting its relevance in predicting breakout directions.
Bitcoin’s journey post-SEC news reveals a pullback to the 50-day MA, followed by a tight volatility contraction leading to a breakout. Deron emphasizes the importance of 52-week highs, indicating less overhead resistance and signaling a stronger bullish trend. The analysis is not only technical but also incorporates an understanding of market sentiment and the impact of major news events.
Ethereum’s Story and Market Rotation
Ethereum’s charts are analyzed in parallel with Bitcoin, showcasing a similar pattern of anticipation, pullback, and breakout. Interestingly, Ethereum displays slight relative strength to Bitcoin during a sideways market, indicating a rotational trend within the crypto market.
Confirmed Pullback Buying Mode
With Bitcoin and Ethereum in confirmed uptrends, Deron introduces the concept of “confirmed pullback buying mode.” This means any pullback to support is viewed as a buying opportunity. The analysis highlights the importance of identifying pullbacks and waiting for confirmation signals to optimize trade entries.
Profit-Locking Strategies
Despite the bullish market conditions, Deron emphasizes the importance of locking in profits, showcasing a recent example of closing a position for a 37% gain. This aligns with the swing trading philosophy of capitalizing on market swings and reinforces the importance of disciplined trading strategies.
Selective Approach in a Bullish Market
Deron introduces the challenge of selecting the right trade setups in an increasingly bullish market. While it may seem that all boats are rising with the tide, the importance of being selective becomes evident. The analysis introduces a crucial strategy of looking at weekly charts to identify cryptos at new 52-week highs, signaling stronger relative strength.
Volume Analysis and Confluence
Volume is identified as another key factor in selecting top-quality trade setups. Deron emphasizes the importance of volume in confirming price movements and introduces the concept of confluence, where multiple support levels align to increase the strength of a potential trade setup.
Case Study: Relative Strength on Daily vs. Weekly Charts
A case study compares two altcoins, CFX and IMX, highlighting the importance of looking beyond daily charts. While both altcoins show positive trends on daily charts, the weekly charts reveal significant differences. IMX, being at a new 52-week high, is identified as a stronger candidate due to less overhead resistance.
Patience, Discipline, and Timing
Deron stresses the importance of patience, discipline, and proper timing in crypto trading. The analysis introduces two potential entry types: correction by time and pullback entry. A correction by time is observed in Bitcoin, where a consolidation phase near its highs indicates bullish price action. The importance of waiting for pullbacks and avoiding chasing runaway breakouts is emphasized.
Top Altcoins on the Radar
Deron presents a list of top altcoins on the radar for potential trade entries. These include ETHEREUM, PENDLE, SEI, RNDR, and PYTH. Each altcoin is assessed based on its relative strength, recent performance, and potential pullback scenarios. The importance of waiting for confirmation signals, such as bullish reversal patterns, is highlighted.
Potential Buy Points in Bitcoin and Ethereum
The blog concludes with insights into potential buy points for Bitcoin and Ethereum. Deron outlines scenarios for both correction by time and pullback entries, emphasizing key support levels, moving averages, and confluence. The analysis provides a comprehensive guide for traders looking to capitalize on crypto market opportunities.
Conclusion
Mastering cryptocurrency swing trading requires a holistic understanding of market dynamics, technical analysis, and strategic decision-making. Deron Wagner’s insights provide a roadmap for traders to navigate the complexities of the current crypto Bull Run. By emphasizing the importance of big-picture analysis, confirmation signals, and selective trading, this blog equips traders with the knowledge to make informed decisions in a dynamic market. Whether you’re a seasoned trader or a novice, the educational content presented here lays the foundation for success in the exciting world of crypto swing trading.
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