68 Trading Plan (10/10 – 16/10/2022) – When Will the Sideways Action End?
Hello, traders! After a week of lackluster sideways movement with narrow ranges, let’s dive into our trading plan for Bitcoin and some altcoin pairs for the coming week!
Analysis and Outlook for Bitcoin (BTC)
1W Chart of BTC/USDT on Binance, Screenshot from TradingView on 09/10/2022
On the weekly chart, BTC is testing the support zone and it’s clear that the price has been temporarily “held” around the $18,000 – $19,500 range. This buying pressure at the support level, combined with a significant decline over an extended period, seems to have paused further selling in this area. However, despite reaching this support zone, BTC has yet to show a strong bullish reversal, remaining in a sideways trend.
You can easily identify BTC’s sideways movement through the following signs:
- Lack of clear peaks and troughs to establish a trend.
- Low trading volume, especially in recent days.
- Small daily candle bodies (low volatility).
1D Chart of BTC/USDT on Binance, Screenshot from TradingView on 09/10/2022
Typically, after such a period of sideways action, the market tends to experience a strong move. Since BTC has been in a downtrend for a long time, we can anticipate a potential bounce (note: not a full uptrend, just a bounce). For this to happen, we first need a stop-loss sweep (to eliminate long positions) and then fill buy orders at favorable prices (from whales).
Therefore, I expect a scenario as follows:
1D Chart of BTC/USDT on Binance, Screenshot from TradingView on 09/10/2022
This scenario would start with a relatively strong drop of BTC to the $17,000 – $17,500 range. Subsequently, the price might form reversal patterns like double bottoms or head and shoulders before rising back to the upper range (around $22,000 – $23,000).
A promising signal to support this plan is the RSI potentially breaking out of its downtrend line on the 3D chart.
If you need additional confirmation, you can wait for the RSI to break out of this trendline.
1W Chart of BTC/USDT on Binance, Screenshot from TradingView on 09/10/2022
BTC.D (Bitcoin Dominance)
The outflow of funds from the market has driven BTC.D to a very low level, around 41%. We should monitor BTC.D in the coming days, in conjunction with the above scenario, to predict whether BTC.D might sweep stop-losses (fall below support) and then rebound, potentially aiding BTC in entering a “bounce” phase.
Bitcoin Dominance Chart, Screenshot from TradingView on 09/10/2022
Promising Altcoins
Based on the plan discussed above, here are a few altcoins to watch:
OP
1D Chart of OP/USDT on Binance, Screenshot from TradingView on 09/10/2022
OP has seen a significant distribution from the $2.20 peak to its current level. The price is now approaching a key support zone. You might consider dollar-cost averaging into buy positions between $0.74 – $0.80, with a stop-loss below $0.64 and a take-profit target of $1.00 – $1.10.
For more precise timing and a shorter stop-loss, you could wait for price reactions at the support level and enter trades based on setups in smaller timeframes (4H-1H).
CHZ
1D Chart of CHZ/USDT on Binance, Screenshot from TradingView on 09/10/2022
CHZ has formed a downtrend on the 4H chart and is currently in a sideways phase. The plan for CHZ is straightforward: wait for a breakout and then re-test before entering. However, since the 4H trend is down, be cautious:
- Enter trades when breaking out in the direction of the trend.
- If the price breaks upward, consider taking profits at supply zones and resistance levels, and potentially enter short trades if favorable setups occur.
Conclusion
These are a few trading plans from my perspective. I hope this gives you some insights for better trading in the coming week. Don’t forget to join Coin68 Trading to trade and chat with us!
