NXC Breakout From Accumulation

Updated

NXC has successfully broken out of its accumulation zone, retested it and bounced off former resistance turned support.

The short term future for alts depends heavily on bitcoin's price action and additional FUD coming out of China - news of a ban on mining there would likely cause a sharp correction and invalidate this move.

TP1: Just north of 12k sats
TP2: 15k sats
TP3: 19.7k sats

Comment

TP1 hit. Volume declining and failed to break 12k+ sats a second time, looking like we may see a dip before taking the next leg up.

Comment

As expected, dipped and just bounced off the .5 retrace level, as it did in the previous leg up.

With Bitcoin looking shaky hours before the start of a potentially "Bloody Monday", I think there's a fair chance for another downside move in the future, and will be watching the .618 retracement level/ high of the previous move up around 10k satoshis for a bounce with convincing volume.

Comment

Note: Zone to watch as mentioned in previous update pictured here:

Comment

printed a head and shoulders on the 1H chart and just bounced (weakly) off the .618 retracement level/previous resistance. More downside incoming.

Measuring the distance from the neckline of the H/S to the head to give us an idea of where this downward move may end, we can set a target of around 7500 sats, which would represent a full retracement of the previous move.

A move below 7500 sats would represent a move back into the accumulation zone and an end to the current run, so watch for the bounce there.

Comment

Looks like I spoke too soon during the bounce - respected the .618 retracement level/previous resistance turned support in the 10k range. Now, the third leg of the move has just begun.

Using trend based fib extensions, the .786 fib level aligns 2nd target price of around 15k sats - given the last move, the 16.25k sat range is also an area of interest. After that, 1.618 fib extension level aligns perfectly with our 3rd target around 20k sats, although we may not see that at this leg given resistance around ATH prices after the 17k range.

Comment

Sorry for the late update, but wow. After failing to break 13k sats, NXC has retraced its entire move back to the 7500 level and appears to be holding above there now. Sold some of remaining bag in the 9000s and just re-bought back around 7900, anything lower than 7500 and I'll cut my "trading bag" and will hodl the rest.

As it stands, between 7500 and 9000 represents an excellent re-accumulation zone before the next leg, and its likely we could be stuck in this range for some amount of time until MM's are ready to make the next leg up.

altcoinpapi

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