68 Trading Plan (17/10 – 23/10/2022): Waiting for Better Opportunities!
Last week, BTC experienced a sharp dump following the CPI news, aligning with our trading plan. If you managed to execute buy orders, you likely saw some profit. If not, don’t worry; opportunities will still be there. In today’s post, we’ll continue to develop our trading strategy for the upcoming week.
Opportunities!
Bitcoin (BTC) Analysis
The weekly demand zone remains strong. Despite the CPI coming in at 8.2%, which is still relatively high, the market has not seen a major sell-off. Prices were pushed down by the bears but quickly recovered, forming a long lower wick.
Shifting to the daily timeframe, BTC is showing a narrow sideways movement. I’ve noticed that the Awesome Oscillator (AO) is starting to signal a potential bottom convergence. The necessary condition here is for BTC to dump and create a lower low than the previous one, contrary to the AO indicator.
A promising signal supporting this plan is that the RSI is trending towards breaking out of the downward trendline on the 3-day chart.
For additional confirmation, you can wait for the RSI to break out of this trendline.
BTC.D (Bitcoin Dominance)
Last week, we anticipated a potential “shake-out” of BTC.D, but it didn’t materialize. This plan remains valid and is expected to align with BTC potentially dropping to the 16,500 – 17,500 range.
Promising Altcoins
DYDX
DYDX experienced a bull run on the daily chart and is currently undergoing a correction. The price level at 1.311 previously acted as resistance with a false breakout, so I expect the price to test this level again before continuing upward.
You can monitor DYDX and look for setups at this price level on shorter timeframes. I will provide updates on 68 Trading, so you can follow the community for more insights.
SOL
SOL has been on a strong downtrend from its peak. It’s now approaching a strong demand zone (note the previous reactions with three touches followed by a strong uptrend). If you’re a fan of Solana, you might consider buying SOL in the 22-24 range for a medium to long-term position.
Important News
Next week, there won’t be many significant news events likely to cause major price fluctuations. However, keep an eye on October 20, 2022, when the US will release initial jobless claims data (12:30 AM US time). This indicator will reflect the unemployment situation in the US and directly impact the FED’s interest rate policy.
Conclusion
This is a summary of my personal trading plan. I hope it provides you with additional perspectives for better trading decisions in the upcoming week. Don’t forget to join Coin68 Trading to trade and discuss with us!
