$ZEC Extreme fear capitulation. The bounce is being set up now.
MARKET STORY & PSYCHOLOGY
ZEC got crushed -18%, flushing out every weak hand. The 4h RSI hit 15 – a level of pure panic. Now, volume is drying up and price is stabilizing near $396. This is not accumulation for a new bull run; this is a classic dead-cat bounce setup. Smart money is taking contrarian long positions for a swift relief rally back into value.
THE STRATEGY & CLEAN SETUP
· Direction: Long (Counter-trend Bounce)
· Entry Zone: $395 - $400
· Stop Loss (SL): $380 (Below the recent swing low and 4h Bollinger Band support)
· Take Profit Targets: TP1: $430 (4h EMA(9) & Mid-BB), TP2: $460 (4h EMA(50) Resistance)
· Leverage: Up to 50x (Use with extreme caution on counter-trend plays).
THE MATHEMATICS (RISK/REWARD)
· Risk per Unit = Entry ($397.5 avg) - SL = $17.5
· % Trade Risk = ($17.5 / $397.5) = 4.40%
· Real Account Risk = Trade Risk / Leverage = 4.40% / 50 = 0.088%. This is how you risk a tiny fraction of your account for a high-potential bounce.
FINAL PUNCH & CALL TO ACTION
This is a tactical bounce play, not a long-term hold. The risk is defined, the reward is clear. Are you buying the fear, or selling it?