For instance, in the absence of obvious indications of a trend reversal, investors should refrain from trading overbought or oversold cryptocurrencies. Furthermore, until they break out or recover, assets trading at significant supports or resistances are wise picks to stay away from.
Despite the common "Fear of Missing Out," knowing when to wait is essential to effective risk management measures.
Avoid trading Bitcoin (BTC) at the $52,000 resistance
To start, one should stay away from trading Bitcoin (BTC) in the current price range. A significant multi-year resistance is being tested by BTC at $52,200. In 2021, this region served as a significant price support and resistance.
Since entering this narrow range on February 14, Bitcoin has shown a low trading volume in the wake of the uncertainty. Right now, anything may happen. Bitcoin might either reverse course from the bull run or keep rising. Here, waiting for the definition of its future price action is perhaps the wisest course of action.
Arkham (ARKM) in an ‘overbought’ momentum
From an alternative viewpoint, the Relative Strength Index (RSI) for Arkham (ARKM) is trading with an overbought condition in four distinct time intervals. This is a sign of exceptional vigor that bull markets typically exhibit.
However, if the cryptocurrency starts to lose steam in shorter time periods, being overbought typically heralds trend reversals. Although ARKM is not currently displaying trend reversal signals, the RSI is high enough to suggest a quick correction.
As a result, traders should steer clear of Arkham at these current levels, which are up 23.16% over the past day.
Jupiter (JUP) in an ‘oversold’ momentum
However, Jupiter (JUP) shows a daily RSI of 29.94, indicating that it is "oversold." As of press time, JUP is down 0.29% and trading at $0.517.
Interestingly, Jupiter's 4-hour RSI is neutral, indicating a potential buy signal and a trend reversal. However, the group just carried out a large-scale token airdrop, adding to JUP's dangers. Thus, it is advised to steer clear of trading it when there is a high chance that early investors will continue to sell it off.
Interestingly, Jupiter's 4-hour RSI is neutral, indicating a potential buy signal and a trend reversal. However, the group just carried out a large-scale token airdrop, adding to JUP's dangers. Thus, it is advised to steer clear of trading it when there is a high chance that early investors will continue to sell it off.
Investors should steer clear of the three aforementioned cryptocurrencies and hold off on making any trades during this period of intense speculation and uncertainty.
Notice: Nothing on this website should be construed as investment advice. Investing is a risky endeavor. Investing involves a risk to your capital.
Notice: Nothing on this website should be construed as investment advice. Investing is a risky endeavor. Investing involves a risk to your capital.
SOURCE: Finbold
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