Trading strategies: Calm after the storm
Trading strategies: Calm after the storm

Trading strategies: Calm after the storm

By Federico Izzi - 12 Jun 2018

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Trading strategies: The bear takes a break after the heavy downturns of recent days.

Trading strategies, calm after the storm: Leggi qui l’articolo in Italiano.

Ethereum Classic (+20%) and Binance Coin (+16) perform well.  For Bitcoin the recovery of 7,200 is essential.

Slight signs of recovery are returning after the storm that hit us last weekend.

The total capitalization tries to recover the 300 billion dollars with the Bitcoin that, despite the bad fall, returns above the 39% of the market share, highlighting how in the particularly critical phases the first crypto remains the main reference of the sector.

This morning there are alternating red and green signs in the top 10 of the list, with oscillations close to parity.

We need to go further to notice two important rises that are characterizing these last hours.

At the 18th position, we find Ethereum Classic (ETC) with a rise above 20%, thanks to the announcement that will see it listed on the exchange Coinbase.

Binance Coin (BNB), which ranks 16th, also enjoyed similar benefits, rising by almost 12%. The token gains in the wake of the news of the last hours according to which in the next days the exchange Binance, among the first five cryptocurrency exchanges in the world, will open a branch in Malta offering the possibility to directly convert the cryptocurrency in fiat, initially in euro and then in dollars.

After the explosion of volumes recorded during the fall on Sunday, the highest peak since May 11, we return to trade just above the daily average of recent weeks, showing disinterest on the part of operators who do not seem particularly shaken by recent falls.

trading strategies

Bitcoin (BTC)

Tries to reject the bearish trend that Sunday afternoon pushed prices under the bullish trendline (red line).

The bear’s damage highlighted a negative technical signal on the bimonthly cycle that began in April.

The only comforting starting point for the bull is the volume that remains thin in a technical context that is usually accompanied by strong sales.

Operating levels

UPWARD TREND: A recovery of 7200 is necessary to evaluate the intensity of purchases and the desire to go up again.

DOWNWARD TREND: The current strength of 6600 dollars is a signal that will have to find further confirmation to be considered a valid support. Descent below 6400 will strengthen the current bearish trend.

trading strategies

Ethereum (ETH)

The low reached on Sunday evening, with prices reaching the technical and psychological threshold of 500 dollars, reviews the target of the bearish Head & Shoulders, drawing on the graph a double minimum.

Since the highs at the beginning of May, the bearish trend indicates a loss of more than 40% in just over a month.

The bullish trend now finds itself reckoning with time.

In fact, if the hypothesis is correct, the bimonthly cycle seems to be approaching its conclusion.

Prices attempt a timid rebound by returning around the 530 area. A $550 recovery is required to attract buyers.

Operating levels

UPWARD TREND: The recovery of 550 dollars will begin to give the first signs in favour of an upward trend.

DOWNWARD TREND: The break of $500 opens up room for more slips toward the bottom. There are no other supports before the $420 area

Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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