Double Bottom Play on XTZHi everyone, I hope you are all doing well.
I am obsessed with low risk high reward spots. XTZ seems to be providing us with a potential opportunity. This is a low probability play, but the reward is well worth it. XTZ both likes to bounce from oversold RSI levels on the daily, and also is more prone to double bottom with its price compared to other coins. It could be shaping up to form its weekly higher low.
Currently, BTC is roughly 3% away from its $55,600 low it made a few days ago, while XTZ is about 8% from its low. This increases the likelihood of a double bottom bounce for XTZ as it will have some extra wiggle room to work with even if BTC price breaks down below $55,600 for another leg. Finally, the 200 day simple moving average is at $4.725 as an extra layer of support.
Initial entry: $4.711
Second entry: $4.599
Stop Loss: $4.579
Take profit: Just below the $6.50 resistance zone and 50 SMA cluster.