A Nervous Weekend for Alt-coins, Will Cello Hold?
After Bitcoin failed to break 50k this weekend, many people were wondering if crypto had topped out. Over the last 24 hours there were 1.6 Billion dollars in liquidations of various crypto currencies. Once these positions were liquidated buyers were able to hold the bid and restarted the bullish climb to recovery what was lost.
Even though Cello is not able to be traded with margin on many platforms and does not have derivative products to use it still felt the pressure from broad based sell off. Luckily at key demand areas buyers jumped back and pushed the price back into the "consolidation zone". As mentioned in the previous ideas linked to this one, this was the dip to buy. Even in during the downturn key trend line supports were not broken.
This is price action is bullish. If this was a sell off to push Cello back into its previous ranges before the breakout we would have seen the trend line fail and our demand levels broken quickly and on high volume. The last low made was done on high volume and left a very long wick. This is indicative of motivated buyers coming into the market due to the price being unfair in the buyers favor. Essentially, sellers pushed price down too far and too fast and buyers couldn't resist getting back into Cello at that low of a price
So Where Are We Going?
Short Answer. We are going up.
You should already be positioned and hopefully loaded up some more during that sell off. If not rely on the yellow dashed lines for support/resistance areas that could lend themselves to good entries. Cello will backtest levels before pushing higher, patience is key to finding these entry points. If you are currently down from your entry, this is a fantastic lesson that entry points matter. If able you should look into adding more Cello during backtests of key support levels.
Key Levels Ahead:
Resistance:
$4.50
$4.70
$5.00
There are some minor supply levels between there but I believe these levels will be tested over the next week.
Even though Cello is not able to be traded with margin on many platforms and does not have derivative products to use it still felt the pressure from broad based sell off. Luckily at key demand areas buyers jumped back and pushed the price back into the "consolidation zone". As mentioned in the previous ideas linked to this one, this was the dip to buy. Even in during the downturn key trend line supports were not broken.
This is price action is bullish. If this was a sell off to push Cello back into its previous ranges before the breakout we would have seen the trend line fail and our demand levels broken quickly and on high volume. The last low made was done on high volume and left a very long wick. This is indicative of motivated buyers coming into the market due to the price being unfair in the buyers favor. Essentially, sellers pushed price down too far and too fast and buyers couldn't resist getting back into Cello at that low of a price
So Where Are We Going?
Short Answer. We are going up.
You should already be positioned and hopefully loaded up some more during that sell off. If not rely on the yellow dashed lines for support/resistance areas that could lend themselves to good entries. Cello will backtest levels before pushing higher, patience is key to finding these entry points. If you are currently down from your entry, this is a fantastic lesson that entry points matter. If able you should look into adding more Cello during backtests of key support levels.
Key Levels Ahead:
Resistance:
$4.50
$4.70
$5.00
There are some minor supply levels between there but I believe these levels will be tested over the next week.
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