Crypto: Time correction over?
The following was mentioned in the midweek Wednesday update,
Models picking up signs of exhaustion in lower time frames. the liquidity in Crypto is low. Any adverse newsflow could cause sharp reactions. Now, this doesn't mean an outright SELL signal yet. It means when things are heated up on lower time frames, it's best to play defense.
There are 2 ways by which the market flushes out excesses. Price correction and Time correction.
Hedging your trades might not be such a bad idea. Models picking up bullish signals on VIX. If it plays out then it could lead to a sharp pullback.
We got a big spike in $VIX and a sharp correction in Alts on Thursday and Friday.
Since then the good news is, more and more data is suggesting that it's a time correction, and an upward trend could resume soon.
$VIX has calmed. DXY too showed signs of reversals on LTF but still closed weekly below support levels.
Ideally, we would want to see follow-through and DXY heading lower. This would confirm the uptrend in RiskOn assets.
I also mentioned the below
Regardless of the LTF shakeouts, I would personally be just holding $BTC. In these extraordinary times, if there's one asset that doesn't feel risky to hold, it would be BTC in my view.
It still appears to be the case, $BTC is in a strong uptrend and seems to be headed toward mid 30K region.
Coming to Model positions
There have been few entries and exits.
NOTE: The strategy and the invalidation levels mentioned are based on Weekly closing prices. So ideally, subsequent weekly updates would cover the Exits anyways. But for those who like to trade in and out of positions, it would be best (it's not a recommendation, just guidance) to wait for Daily or 3Day time-frame closing prices to consider.
Use the Weekly Closing Prices to calculate Entry & Exit Prices & Performance.
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