Thread by @tradingroomapp

TA vs FA

Technical Analysis vs Fundamental Analysis

TA works 90% of the times, FA works many times but when FA works, TA takes a backseat

Don’t blindly use TA during times of major economic events & catalysts from other co-related markets

Thread 🧵

It’s wise not to use TA during the black swan events or during uncertain emotional events

Wait for that event to pass & TA will eventually takeover price action

Global stocks are dumping hard with Nasdaq $NQ leading the pack. For now $BTC is closely correlated with #Nasdaq

..3

#Bitcoin gave up all the gains and is back below original breakout levels. I won’t apply TA for the day until I see Nasdaq finishing a floor. The dump is brutal and hard.

Next support for NASDAQ is 5% away from current levels. Let’s wait and see if that holds

….4

$BTC dump also triggered a sell off across the board for ALTs as well. Next support 40500 & 39000 round number.

If we break 39000 conclusively and if nasdaq breaks it’s support at 14000, we will be in a confirmed bear market

Doesn’t mean we are going to zero but

…5

But that surely means a prolonged sideways and choppy price action with downward bias for most majors.

Keep an eye on #NASDAQ 14700 level which itself is a major support in the current price zone. If we break that next 14260 & 14000 & after that free fall to 12900

…6

While stocks have the tendency to dump hard they also have the ability to bounce back hard. But need to wait and see how stocks behave

Jan 26th is an important date in the calendar so mark it. We’ve Jan FOMC meeting & bond yields are likely to rise

….7

Rising bond yields could mean stocks may be crushed across the board especially tech stocks & high growth stocks and if #bitcoin continues to be correlated with #Nasdaq we will see it’s ripple effects on entire #cryptocurrencies market

What to do & how to play ?

….8

When asset prices starts trending down and we develop a confirmed bearish trend, buying them is like catching a knife

Best trade in town is always buy when assets are trending up or let them die and wait for bottom consolidation & fresh local breakouts

…9

It’s not all lost as long as #Bitcoin holds the crucial support levels. Our best case scenario is #crypto decoupling with stocks at some stage & post local reversals

However let’s analyze downside scenarios. Almost every major #crypto index is testing a key support level

…10

If those levels break the downside support is anywhere from 10-30% away for those indexes. I am referring to #TOTAL #TOTAL2 #TOTAL3 #MIDPERP & #SHITPERP

#bitcoin itself has multiple support between 38K & 29K

So those sitting on cash can scoop some dips if we get any

…11

Otherwise let’s wait & see #NASDAQ tomorrow. Remember both nasdaq and #bitcoin are testing key support level. As long as they hold we are ok. If not let’s prepare for doom & gloom scenario for few weeks!

If you like this analysis, pls RT & Share