I know, I know. I know what you're going to say. That I always drink champagne.
Well, maybe or maybe not, but I am always optimistic when the work happens at support.
Here we are looking at Solana versus Bitcoin and I will explain why this is a mixed case and why I am optimistic nonetheless.
Trading is now confined between Fibonacci retracement levels of 0.618 and 0.786. It goes without saying, since the rejection at resistance led to the current chart, and there are many lower highs in the long term, we can consider this chart bearish.
Natural, completely understandable. However, bullish movement always starts when prices are low or near support.
Notice the numbers on the chart, 1,2,3. Number 1 and number 2 were in the same position we are in now. Between 0.618 - 0.786 fib. bearish, but the market turned bullish. Trading volume dropped to zero, but this does not reveal bullish tendencies; it simply indicates that a strong move will happen later but can occur in either direction.
However, the trends were bearish based on lower highs, thus, the drop in volume is a bad sign for the current movement, which is bearish. It reveals that the bearish movement has been losing momentum for years, and this can be read inversely as a bullish signal.
The market is complicated anyway. Reversals can happen, but when?
Crashes can happen, just to seek liquidity then we see growth. Growth can happen immediately as the movement occurs at support that has already been tested and confirmed.
While there is always a risk when making any choice, we buy at support when prices are low. If prices drop, just follow your plan. Some people use stop losses, while others are willing to wait. What is your plan? How will you deal with the market in different scenarios? This is what you need to plan for.
If you ask me, I buy and hold. If prices move down, I buy more. If prices move up, great, that’s profit and I plan to take profits on the way up. This is just one way of course based on the market.
With margin, enter slowly to build a position over time as the market tends to produce as many dips as possible before moving forward. So, I do not go 100% in at once, but rather accumulate slowly with spare cash. If it dips, add more. When the market starts moving, I just let it continue.
Namaste.
✅ Trading here on $SOL