Idea for ZetaChain

13 Oca

Hello, fellow traders!
This is my analysis on ZetaChain.

1️⃣ Analysis
There is a lot to cover for ZetaChain,
1. The uptrend channel (marked with white lines in the chart) has been broken below on Dec 18th. This potentially meant that the price may reverse its trend into bearish.
2. We then see a bearish pennant (marked with red lines) – breaking below the pennant would further increase the likelihood of a downtrend. And we see a breakthrough on the 9th.
3. Even better, we see an attempt to reenter the pennant on 10th with upper wick touching the pennant but fails as the price continues its decline the next day. We now see three consecutive bearish candles including today.


In an hourly chart, we see another Rising Wedge pattern. The price broke below on Jan 12th, 01:00 ET. There were two attempts of recovery after the breakthrough – both failing.

2️⃣ When did I enter?
This post is going to be different from my previous posts as I’ve already entered trading for ZetaChain – I’ve entered short and here is how and when I did so.

I’ve closely watched the hourly chart of Bitcoin as the market tends to follow its movements. I’ve observed Bitcoin’s hourly candle breaking below the consolidation box, waited for the next candle to touch the box again to confirm the rebound. The next candle indeed touched the box but eventually closed as red, which is exactly what I wanted to see. (Check the chart below!)

This is when I entered short for ZetaChain, entry price being 0.499. The price of ZetaChain is 0.4855 as I write.


I suggest splitting your entries by checking smaller intraday timeframes such as 5min, since entering a massive size at once could be risky.
Above is the 5min chart and you will see the yellow dotted resistance line I drew – this line helped me figure out where to order new entries. If we are trading long, we would draw support lines. 5min chart is very volatile and major trendlines will have to be adjusted frequently.
Also, check the Bitcoin chart regularly to expect the price movements.

3️⃣ Target price
Our target price would be 0.4222, which is right above the Heavy Support Zone.
If the price reaches the target price, we will close half of our position and watch the market further. But always remember that the target price is often an idealized figure - it typically represents the absolute maximum profit we hope to achieve from a trade. I've learned that the price may never reach this ideal target, and I shouldn't wait for it.

4️⃣ Considerations
There are a LOT to consider for this trade – not only ZetaChain, but the crypto market in general. CPI Inflation rate for December is being released this Wednesday. The current forecast of the Core Inflation rate YoY is 3.3% - unchanged from the previous one. The inflation rate forecast is 2.8%, 0.1% higher. If the forecast is accurate, as it usually tends to be, the market could face positive sentiment. The positive trend might continue until 20th, when Donald Trump enters his office as POTUS. (Check the chart below.)

However, the Fed announced last December that there would be fewer rate cuts this year and with the inflation rate still being higher than the Fed’s 2% target, the Fed might decide not to cut the rate this month. This could hurt the market. The interest rate decision will be held on the 29th.
44.26 million tokens are also being unlocked on Feb 1st. Token unlocks can often negatively impact the price of the crypto.

React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
1 Chronicles 29:14

13 Oca

İşlem aktif

Bitcoin broke below the major support line.
This is not unexpected, though, but will favor our trade.