Zcash, possible entry after the correction?Hello, fellow traders!
This is my analysis on Zcash (ZECUSDT).
1️⃣ Analysis
Before diving into Zcash’s chart, I first want to address the current market sentiment.
Bitcoin’s price remains within the demand zone of 97k – 100k, currently testing the support line of the uptrend channel (yellow channel). Bitcoin’s movements in the next few days will be critical as Bitcoin breaking below this channel could trigger fear throughout the market. If it manages to stay within the channel, however, bull rally may continue. The candle is currently bullish, which is ideal, but with 15 hours remaining until the close, things can always change. (I am using UTC-5 as my chart timezone.)
Ethereum’s candle is also bullish, and the price remains within the uptrend channel, which is ideal.
Dogecoin’s movements are also crucial, as it is leading the rally. However, it’s not looking too good for Dogecoin right now as its price broke below the channel yesterday. It would have been much more ideal if the price stayed within the channel like Bitcoin or Etherum but unfortunately that didn’t happen. That said, there’s still a chance for improvements.
The price is still within the Price Action Zone (PAZ) and despite the current candle being bearish, the long lower wick suggests that most of today’s decline has been recovered. As I write, the candle is forming a semi-doji star, with the price only just few ticks below the open price.
If the price manages to reenter the uptrend channel, it could signal a strong possibility of the rally continuing.
Lastly, here’s a BTC Dominance chart. We’ve seen a lot of volatile movements for yesterday, but the candle eventually closed as a perfect doji star. (Open and close were same at 56.94%) While seeing a perfect doji star is notable, Dominance has only been increasing today (Open and low are same at 56.93%). This reflects the psychology behind the curret market of people preferring Bitcoin over altcoins as the market faces growing uncertainties, which could also explain Bitcoin’s performance today. But we still have around 15 hours left until the candle closes and shift of momentum – similar to yesterday – remains possible.
Ideally, we’d like to see the Domiance to drop as we are seeking to invest in altcoins. With this context, let’s now dive into the Zcash’s chart.
Zcash has also suffered from the recent correciton, with its price dropping 21%. However, we see a bullish hammer candle for yesterday (or a close doji-star as I want to call it 😅). The long lower wick also suggests that the buyers were able to absorb the selling pressure. Today, the chart is currently showing another green hammer, but the candle has been fluctuating between red and green so we will have to wait and see how it closes.
The candle from the day before yesterday touched the 49.44 level (which was previously a major resistance level) before retracting. Additionally, yesterday’s candle’s low also came close to the resistance line of the uptrend channel. Both are positive signs suggesting a potential rebound.
2️⃣ Expectations
With 15 hours remaining until the candle closes, a bullish close could present a possible entry for long. (As I write, Dogecoin’s candle has just turned to green. However, this could be temporary, and we cannot be sure until the candle closes.)
3️⃣ Key approach
Our first strategy is to enter long after 3 consecutive bullish candles. With yesterday’s candle already bullish, we now aim for the current candle and tomorrow’s candle to close as bullish as well. If the circumstances are promising, we may consider entering before tomorrow’s candle closes.
We also must be mindful of the Price Action Zone as turbulence might occur – and in the worst cases, even a bearish rebound. It is always best to respect such zones, but the current market sentiments also tend to bypass major demand levels & zones.
4️⃣ Other approach
No other strategy for this one :)
5️⃣ Considerations
Zcash has a market cap of 956 million USD, which is very close to 1 billion. This crypto is definitely much safer than some of the other cryptos I’ve posted about which is positive.
I emphasize this in every post, but I can’t emphasize it enough – Zcash as well as any other cryptos will be heavily influenced by the movements of the giants. Keep watching these giants’ movements as well as the BTC Dominance chart to confirm market sentiment and stay cautious. Thanks!
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
James 1:5-8
