TEZOS Rhymes With Bezos And Other Reasons To Look For Longs.

19 июл. 2020 г.

I normally update Bitcoin, but there is NOTHING to say except that it's still gyrating near the low of the broader range, and we are still long while waiting for it to break higher. MEANWHILE, there has been some unusual and interesting movement in some of the alt coins which in a way reflects the speculative appetite of investors in this increasingly frothy environment. Alt coins have to be some of the highest risk instruments to invest in since they really have nothing to offer besides some kind of "concept". Yet, money flows into anything that can successfully hype its way into the spotlight. Is there any short term value in these things? Sure, wherever there is price momentum, there is opportunity and this is where technical analysis offers the best perspective. In today's video I will evaluate TEZOS and determine what kind of price behavior is reasonable to expect for the coming week.

Usually when I get a question about one of these, it often comes AFTER the market has made it's move. Reasons for these things moving can range from some news about significant advances in the project to "Elon Musk tweeted about it". Either way, IF you are not in from earlier prices, then the next best thing to do is figure out where its inflection points are in order to ANTICIPATE a new potential opportunity. The objective is to isolate locations where reward/risk and probability are attractive RELATIVE to the RISK you are willing to take. If these ideas sound unusual, then you have no business risking real money in alt coins. Novice investors get wrapped up in a "good story" or hype because it offers the illusion of being "informed". The only information of actionable value that most of us have access to is on a chart ESPECIALLY when it comes to short term momentum strategies.

So where are the inflection points on TEZOS? The 2.25 and 2.50 support levels offer historical and proportional areas to look for bullish price action (pin bar maybe?) in the coming week. There is also a minor support at 2.90, which price is testing at the moment without offering any signs of a long setup. The 3.35 area is the current resistance that is in play which is one reference point to measure when it comes to reward potential. The recent structure (since March) is bullish, which means it is reasonable to expect a higher high, so the question becomes WHERE should we take risk? In this situation, I would prefer to WAIT for a setup IF one develops around the mid to lower 2 area. That is where we can assume the least amount of risk relative to testing that 3.35 high area (IF it attempts to test that high). What I like most about this coin (besides the fact that it rhymes with Bezos), is that recent momentum is independent of Bitcoin. A change in this correlation can be related to new capital flowing into this market, and where there is new money, there is potential for it to outperform.