FTM → Fantom Closing in on Major Resistance. What's Next!?Fantom has been marching toward the next key resistance zones ($0.53 and $0.65) as Bitcoin inches toward it's major resistance area of $46,000. The crypto market is burning hot, most tokens are multiple legs into this bull run, what should we expect next?
How do we trade this? 🤔
FTM is clearly aiming to touch $0.53, that almost seems inevitable. What we need to watch out for in these areas is a strong sell response to the resistance zones. If we're going to look for the reversal trade, it is a *must* that we see a strong sell off followed by a re-test of resistance, then a strong bear candle confirmation on a new low. The goal is to get into the trend as early as possible (thus, reversal trading), but you can't short bull candles closing on their highs.
It's reasonable to continue long scalping on smaller timeframes like the 15m and 1hr charts. Our bias ought to remain long until that reversal opportunity shows up. My recent Lifetime Bitcoin analysis covers my rationale in looking for a strong reversal to the $20,000-$25,000 area before the next all-time highs are achieved:
💡 Trade Ideas 💡
Long Entry: $0.48
🟥 Stop Loss: $0.41
✅ Take Profit: $0.55
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long.
2. Three Pushes Up, Looking for A 4th, Watch for Trend Change.
3. Ascending Wedge Breakout to the Upside, Target $0.53.
4. Look for Resistance at $0.53, Support, Potential toward $0.655.
5. RSI over 70.00, Watch for Pullback.
💰 Trading Tip 💰
It's reasonable to take half profits at 1:1 Risk/Reward on a swing trade and move the stop loss up to entry. This secures profits, and allows the latter half of your position to be executed without the worry of loss, improving trading psychology.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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