Today, I’ll break down one of the SIMPLEST yet most EFFECTIVE strategies I use. You don’t need indicators, fancy tools, or anything complicated, just one thing:
Support and Resistance.
Let’s look at the $ORDI /USDT daily chart below.
We can see a clear support level around the $10.5 zone (purple area).
Price tested that support multiple times, then price eventually broke down, meaning that the support turned into resistance.
But, just because a support gets broken doesn’t mean it’s useless.
In this case, after the breakdown, price came back up, retested the same level and got rejected, leading to another move down. Which could've been a clean short trade.
To be a good trader, don’t be afraid to short when the opportunity comes, there’s ALWAYS a way to profit, even in a bearish market.
Price is showing a bullish structure, but I still think a pullback from here is likely. Right now, we could see a move down towards the retest area before Bitcoin continues its push towards the resistance area above.
This retest area also lines up with the Fibonacci level (purple line), which is why I think this is the most likely scenario.
Stop Loss - 2.07 Reason: SUI is having a nice bounce on the 4h 50 EMA, along with the StochRSI and RSI crossing to the upside. It's also oversold on the weekly which could line up for a nice run if BTC behaves. It's in the middle of a range so a little riskier which is why I gave a large buy range. Adjust your risk accordingly
CRAZY DAY TODAY, so many unexpected moves. Price just broke through all key support areas, mostly due to added panic after multiple Asian stock exchanges triggered trading halts today. Then came a "breaking news" headline claiming that tariffs would be paused temporarily, but it turned out to be a hoax. That’s why we saw that sharp bounce, followed by an immediate rejection back at previous support.
So, where do I think price goes next?
In my view, the market is showing us a clue, once the tariffs are officially paused, we’ll see an immediate bounce. I don’t think Trump is crazy enough to let the entire world economy collapse, we’re likely near the bottom now. There might still be some slight downside from current levels, but in my opinion, we’ll revisit the $80K area again soon.
Price got rejected from our resistance area, mostly due to the Trump's tariff news yesterday. The stock market isn’t liking it either, S&P 500 is currently down -3.63% in todays premarket.
Reason: SOL looks great on the 4h with both the RSI and StochRSI at oversold levels, along with my proprietary indicator giving a buy signal from exhaustion and being at support. I think at the very least we'll have a temporary relief rally and should be able to hit at least our TP1.
But to know if this level will hold, we’ll need to wait for US stocks to open on Monday.
In my opinion, it depends on how S&P 500 performs on monday, If I had to bet, I’d say it closes green, since it’s been red for the past 3 days in a row.
Price recently dropped over -20% in just a couple of hours. A rejection wick has formed in the 1D chart (purple zone).
BUT, we’ve seen this happen before. On February 25, a similar rejection wick led to a short term bounce, but eventually the price came back down to revisit the wick.
Right now, we could see the same scenario play out: a small bounce from here, but eventually, price is likely to revisit the wick again.
This view is also supported by price forming consistent lower lows since its ATH in December.