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Daan Crypto Trades

@DaanCrypto

11 Jun

Identifying Market Structure 📚

A market structure tells you what trend an asset is moving in.

1/7

🔹Bullish Market Structure

Has higher highs and higher lows. This example is on the daily.

You could point out a few levels where, looking at the week before, price technically made a lower low.

But it's mainly about the general bigger movements price makes.

2/7

🔹Bearish Market Structure

Here we can see price is consistently making lower highs and lower lows. This was a big change from what we saw on the run up to $65K.

Currently, price is moving sideways but still has to make a higher high on the daily to really see a reversal.

3/7

Read 7 tweets

Daan Crypto Trades

@DaanCrypto

11 Jun

$BTC Liquidity 📚

I often use the term "Liquidity" in my analysis'.

I'll explain how it works and how I use it personally.

1/11

So what does "Liquidity" mean?

While all three definitions are obviously correct, the bottom one is most relevant for us.

2/11

The levels I map out are often important pivots (reversal area's) with highs that haven't been touched in a while.

This means that there is most likely a lot of stop losses placed there. Because these are the most clear invalidation levels for most people.

3/11

Read 11 tweets

Daan Crypto Trades

@DaanCrypto

8 Jun

$BTC Thoughts On The Market + Current Range.

Updated the Wyckoff schematic with how the chart would look if we were to go for a spring.

1/15

Starting off with: Yes, I know these ranges often take longer than just a few weeks and that a 4H accumulation/distribution is quite a low timeframe.

But I do believe that these ranges will take as long as necessary for the people doing the accumulation or distribution.

2/15

If supply would be dried up and the composite man thinks he has sufficient control of the supply within the range, there is no need to exhaust the supply more. It will likely only cost him more than he gets back.

That's usually when the range resolves.

3/15

Read 15 tweets

Daan Crypto Trades

@DaanCrypto

7 Jun

If me, or other traders don't say up or down because we want to wait for more certainty. This is why.

In the current pattern it's a gamble which way price may go first. Even though you might have a prefrered bias, it's best to wait for a breakout and THEN enter.

You wait for the probabilities to be in your favor before entering the trade.

Both longs and shorts are a bad risk/reward ratio from where we are right now seeing it could literally go either way or you can get a sharper entry in at a better price.

As can be seen by the example, if we simply wait for a breakout to either side, we can get a proper long or short in with a R:R of over 2.5.

If we have then calculated the probability correctly, this trade should net us a profit in the long run.

Read 4 tweets

Daan Crypto Trades

@DaanCrypto

4 Jun

The "Elon fucked us over" narrative is back in full force.

Think to yourself: "Was that tweet really that important to make price dump over 6%?"

It was mostly just a meme. Elon complaining about $BTC's environmental issues and Tesla not accepting BTC was the actual news.

1/x

Those announcements happened over a week ago.

Half of the people blaming Elon today, don't even seem to know what is said. They just heard/read somewhere that the price dumped again because of Elon and didn't even bother to find out what he actually said.

2/x

Besides, the harm in the chart was already done. We closed below the daily resistance and then started falling after that. Elon's tweet was over an hour after that.

3/x

Read 7 tweets

Daan Crypto Trades

@DaanCrypto

4 Jun

$BTC Thoughts:

Failed to close above the $39.2K daily level I mentioned yesterday and then dumped below the breakout point of the pennant as well.

Back to the mid range which held for now.

After this throwback to the mid range I'm short term neutral now. Fundings are going up which is generally bearish but we are still above the mid range which is good.

If we lose the mid range we'll likely visit the bottom yellow trendline.

If price were to also lose that trendline I think there is a high probability we do go for the $30K lows. We'll have to see how price reacts there.

This is still quite far out though but good to have a plan ahead of time.

Read 6 tweets

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