May 20, 2022

On Wednesday, when the NASDAQ plunged 5%, Bitcoin ($BTC) sold off, but found support at its May 14th low. 

This is marked by the horizontal line on the 4-hour chart below:

Price action started improving yesterday, with much of the altcoin market finally starting to wake up a bit.

Bitcoin moved back above the psychological support level of 30,000 yesterday, then spent the overnight session consolidating in a tight range above that level.

When $BTC was consolidating overnight, we started noticing emerging relative strength in the altcoin market, with a handful of tokens rallying higher while $BTC moved sideways.

Overall, we see that $BTC has been in a sideways consolidation pattern for the past 6 days.

Now that the price of $BTC is showing a volatility contraction near the highs of its range, a breakout above the week-long consolidation may be coming soon.

This may be further aided by the short-term bullish reversal that may be developing in the stock market as well.

We mention this because it may be an overall bullish signal for crypto as well–at least in the short term.

After closing out a string of winning crypto swing trades recently, the Morpheus Crypto portfolio has been mostly to fully in cash because the market has lacked bullish confirmation and relative strength in the altcoin market.

However, that situation appears to be significantly improving as we enter today.

As such, we are now looking for new trade setups with relative strength and high volume.

Of course, we still need to make sure we have low-risk entry points, such as pullbacks to intraday support.

We will send an alert to Morpheus Crypto members with our exact buy trigger and stop price if we enter any new trades today.

Currently, we are stalking $ENS and $KNC for potential pullback entries.

Start your Morpheus Crypto membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. Morpheus Crypto PRO also provides you with access to your live Crypto Trader Chat. If you enjoy this free service, please share with a friend.

The post [crypto] Market Minutes – Watching for Potential $BTC Breakout appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

May 19, 2022

Overall, the crypto market still seeing correlation to the stock market. 

However, we have returned to seeing slight bulllish divergence in crypto vs. stocks.

Yesterday, the Nasdaq 100 ($QQQ) was down about 5%, but Bitcoin ($BTC) and most of the crypto market held up relatively well.

$BTC snapped back above the short-term pivot level around 29,400 (prior support of the third higher low on the 4-hour chart).

Today, we saw broad-based bullish momentum even with the Nasdaq 100 slighty lower today.

$BTC is back above the 30,000 level.

$KNC continues to show high rel. strength after rallying above the high of its 4-day consolidation pattern today.

It looks like we may see some ideal, lower-risk pullback buy entries by tomorrow.

As always, we will alert Morpheus Crypto members of our exact buy trigger and stop price on the top crypto swing trade setups.

Start your Morpheus Crypto membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. Morpheus Crypto PRO also provides you with access to your live Crypto Trader Chat. If you enjoy this free service, please share with a friend.

The post [crypto] Market Minutes – Crypto Bullish Divergence vs. Stocks appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

May 18, 2022

The crypto market moved lower today, prompted by a sharp sell-off in the stock market. 

However, $BTC and the altcoin market showed impressive resiliance by finding support at mid-day and began edging higher.

On the 4-hour chart, one of the top time frames for our swing trading strategy, notice that $BTC remains in consolidation mode–despite today’s pullback:

After locking in gains in $MANA and $ETH yesterday, the Morpheus Crypto portfolio is currently 92% cash.

Our “hit and run” trading strategy for weak markets has kept members safe in a downtrending market.

Nevertheless, we are continually scanning for top relative strength setups with low-risk entry points.

Currently, we are stalking $AXS for potential buy entry in the portfolio due to today’s high relative strength, accumulation volume, higher low, and solid fundamentals.

Start your Morpheus Crypto membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. Morpheus Crypto PRO also provides you with access to your live Crypto Trader Chat. If you enjoy this free service, please share with a friend.

The post [crypto] Market Minutes – $BTC Remains in Consolidation Mode appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

May 17, 2022

Bitcoin ($BTC) continued its consolidation pattern of the past four days, after bouncing off major support of its June 2021 lows last week.

Earlier today, we sold HALF of our $MANA position in the Morpheus Crypto portfolio for a solid gain of +17% since our May 13 buy entry.

We also alerted members that we were selling the $ETH position we bought on a pullback for a small gain of approx. +3%–we did not like the price action.

Performance in the altcoin market is slowly improving, but our biggest concern remains the lack of increasing volume to confirm the few breakout attempts we have seen.

Today, we also alerted members that we were entering a new position in Ethereum Name Service ($ENS) due to its relative strength with volume and former leadership.

The $ENS swing trade is already +5% since entry, and we will look to take profits into strength with a short-term time horizon (until overall market conditions improve).

Other than $ENS, we are not yet seeing much standout relative strength in the market.

However, $KNC, $CVX, and $TXA are on our radar for potential buy entry if we can get a low-risk entry point in the portfolio.

Start your Morpheus Crypto membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. Morpheus Crypto PRO also provides you with access to your live Crypto Trader Chat. If you enjoy this free service, please share with a friend.

The post [crypto] Market Minutes – +17% Gain in $MANA appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.

May 16, 2022

Last week, Bitcoin ($BTC) reversed higher after coming into major support of its June 2021 low:

The Morpheus Crypto portfolio remained 100% cash as the market sold off last week.

Then, we bought Maker ($MKR) after we noticed funds rotating into $DAI stablecoin due to the $UST/ $LUNA fiasco. By way of design, money flowing into $DAI is automatically bullish for $MKR.

After the initial spike in $MKR, we waited for a substantial pullback and then entered with an ideal, low-risk entry point.

We then scaled out the next day and quickly locked in an average gain of +44% on a ONE-day hold, as Bitcoin started reversing off its low.

The hourly chart of $MKR below shows our entry and exit points for this “hit and run” trade:

After closing $MKR, we waited for their first pullback after Friday’s rally to patiently and carefully target our next big winner.

That’s when we bought Decentraland ($MANA) due to its high relative strength and massive volume:

Despite last Friday’s bullish reversal in $BTC, trading was pretty quiet over the weekend.

Bitcoin ($BTC), Ethereum ($ETH), and most altcoins edged higher to form two higher highs and higher lows on the 4-hour charts.

However, one key element was missing from the rally–VOLUME!

When prices move higher after a reversal, we always look for the confirmation of higher volume.

Rallies on declining volume indicate a temporary lull in selling pressure–rather than new buyers taking control.

In order for the current rally attempt to get some legs, we need to see increasing momentum in the form of higher volume.

Furthermore, remember that $BTC and $ETH both remain below their 10, 20, and 50-day moving averages.

As such, we must view the current relief rally as merely a bounce off the lows–rather than any type of downtrend reversal.

That means you should remain vigilant and take profits quickly, just as we have been doing with our recent winners in the Morpheus Crypto portfolio.

We are not yet seeing many new, low-risk trade setups in the altcoin market, but we continue to scan for the next big winner.

Start your Morpheus Crypto membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. Morpheus Crypto PRO also provides you with access to your live Crypto Trader Chat. If you enjoy this free service, please share with a friend.

The post [crypto] Market Minutes – Bitcoin Bounces off Support appeared first on Swing Trading Blog | Trading Strategy Articles | Trading Tips.