Monday morning, Total Crypto Market Cap (TCMP) finally corrected after a relatively strong sell off. This was to be expected, but it was almost impossible to find a decent setup to enter a trade on the down trend. However, TCMP is at a point where it meets the 4-hour 200-period EMA and the new Pivot Point. There's some space between the two, but I would consider this a confluence. Confluences are strong points of support and resistances because some traders primarily trade the Pivot Point while other traders would play the 200-period EMA.
Regardless, the TCMP just needs to kiss the sweet spot, and a combination of increased buyer sentiment and short covering will undoubtedly cause a bullish cascade. I understand it's a reach, but my scenario has BTC following the TCMP in completing an ABC.
Do you have any questions or comments? Feel free to get in touch via DM.
Happy trades,
Sim