As I do every week, I review the previous week’s analysis and then explain my vision for the week ahead. Let’s go !
Disclaimer: This article is not intended as investment advice or as an inducement to invest. It is strictly an informational article. You are solely responsible for the trading and investment decisions you make.
Last week’s debrief
Of course, after three weeks of seeing the price go above $25,200, it took a moment of weakness, thinking that the price could scrape some slight liquidity at $20,386, for Mr. Bitcoin to finally decide to go the $25,200!
However, once that famous Bitcoin hits $25,200, there’s not much left to attack until $31,780! This seems like a long way off, but a real question will have to be asked. Can we go that high? Will we retrace from here? It is very difficult to position!
I’d rather wait for the week to pass than tell you nonsense. That’s why this week I’m going to focus on an altcoin that’s got us all buzzing right now. That altcoin is $MATIC, the cryptocurrency of the Polygon blockchain.
Now, what about Poylgon’s MATIC?
Where are we now?
Let’s first take a look back at the overall overview of Matic to see where it stands.
What we can see is that the obvious long term buy was in the support zone between $0.75 and $1. This area had already provided support previously, but in addition, it drew a nice W on a weekly basis, confirming the professional buying bias for this price.
Of course, for those who had an ultimate buy to place on this asset, the $0.3 – $0.5 area was buyable, but this one was much more complex to predict. In fact, a break of the $0.75 level, as we have seen, would have meant a considerable drop. Nice reaction on this old pre-bull run zone in any case and congratulations to those who bought it.
And now (what am I going to do?)?
We are in a strong movement, for someone who positions as a trader, it is difficult to position against the trend. Personally, I know that I will look for short term purchases.
Short term? What about the long term?
For me, the long term purchase of the Matic can no longer be done! This one should have taken place under $1.1182 and ideally on a support as described in the previous part. Moreover, when we look at the chart, we can see that we are fighting on the resistant areas now. And we never buy resistances, neither in trading nor in investing.
Nevertheless, a relevant question to ask is: Is it time to change my Bitcoins or Ethereum into Matic? To try to answer this question, let’s take a look at the comparison charts:
So why look at this kind of chart? It’s important to ask which asset is outperforming the other. Why? Quite simply, because an investor or trader is always looking to optimize his money. So it will be better to buy the asset that is performing better. Comparing one asset, in this case Matic, to another, such as Bitcoin and Ethereum, asks which one will make the most money in the end.
Here, what we see is that in the long term, we have done much better! Indeed, the pairs MATIC/BTC & MATIC/ETH show that MATIC is about to make a new ATH (= All time High, highest ever recorded).
Basically, it’s no longer the time to spend your Bitcoins or Ethereums in Matic for the long term! However, traders who want to superform the market for a short period of time (days/potentially, weeks) will be able to swap. This will allow them to accumulate more ETH or Bitcoin.
Caution! This kind of exercise is not easy, so for beginners, please refrain.
No specific analysis for this week. I’ll share it with you quickly in conclusion, I’d rather opt for a retracement as there is no more liquidity to be found in the North in the short term. However, it has been a long time since we have been in this configuration, so a price departure could happen. Don’t forget that when Bitcoin goes up, it does very little retracement to prevent as many people as possible from jumping on the bandwagon!
As far as Matic is concerned, you will have understood, for the long term purchase it is a bit late! As often, it is necessary to position oneself when nobody speaks about it, it is often at this moment that the best opportunities appear. However, for those who want to optimize their portfolio, it is true that the Matic is at the door of a new ATH compared to Bitcoin and Ethereum, which could allow to take advantage of the flight of the token! It is necessary to remain cautious, because we start to be more in sale areas than in purchase areas!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.