At least not for me. Every time I’ve tried, it’s been nothing but frustration.
Over time, I’ve learned to stay away from setups where price is fighting a wall of overhead supply. I’d rather wait for strength to come back and break through it.
That brings me to Consumer Discretionary $XLY, one of the ultimate “risk-on” areas of the market.
It had its shot at new all-time highs — and failed.
That’s not the end of the world, but it says a lot about where risk appetite stands right now in the very short term.
I’m not sure how long it will take to absorb all the supply at this barrier, but Friday brought sellers back, and until price proves otherwise, this isn’t the kind of chart I want to be long.
Looking around, Friday also gave us the worst single-day crash in crypto’s history.
A lot of traders blew up.
Yet Bitcoin still holds above its VWAP from the April lows and former highs from earlier this year, around 110,000.
That’s my line in the sand for BTC.
As long as we stay above that level, bulls remain in control of the primary trend, and altcoins will likely catch up over time.
But if we slip below it? Look out below.
My friend Louis is all over this theme — he’s my go-to crypto guy. Join him at ASC Crypto and grab this special offer.
Anyway, these are the two charts I’m watching closely this week — a perfect example of the polarity principle in action.
