I am Bai Yue. Today, while monitoring the market, I found that ZEC has been 'lying flat' at the position of 420 USD, unable to go up or down, which makes people anxious. Let's take a direct look at its 1-hour candlestick chart to see what secrets lie within.
Technical aspect: The spring has been tightly compressed, just waiting for the direction to be chosen.
Let's look at this latest 1-hour chart, which contains a lot of information:
Price status: Currently at 420 USD, just slightly above the middle band of the Bollinger Bands (414.5 USD), which is considered a 'middle position', quite ambiguous.
Bollinger Bands opening: If you look closely, the upper band (443 USD) and lower band (386 USD) of the Bollinger Bands are quietly narrowing! Technically, this is called 'convergence', which usually means that the previous volatile market is about to end, and a direction will soon be chosen, with volatility likely to increase.
Bull and bear forces: The MACD indicator below shows that the fast and slow lines are almost sticking together, and the red and green bars are so short that they are almost invisible. This indicates that the bulls and bears have reached a temporary 'ceasefire agreement' at this position, but neither side can dominate, and they are both waiting for an external force to break the balance.
In simple terms, from the chart, ZEC looks like a spring that is being compressed tighter and tighter; beneath the short-term calm lies a significant movement about to occur.
News front: Pay attention to two major catalysts, where the wind is blowing.
Just looking at the charts isn't enough; we also need to pay attention to any movements outside the market. Recently, there are a few points that retail investors should focus on:
Overall sentiment in the privacy coin sector: ZEC is not a lone wolf; it belongs to the family of privacy coins. Recently, discussions on regulatory dynamics and anonymous technologies in the entire crypto market have reignited. Any industry policy news or technological breakthroughs related to this sector could potentially drive ZEC to 'take the elevator' together.
Project progress: The technological upgrades and community proposals of Zcash itself are the internal driving forces. Although there are currently no significant positive developments, once there is a substantial breakthrough in the progress of such projects, the impact can be significant.
Market environment: Don't forget how Bitcoin and Ethereum are performing right now. If the overall market warms up, funds will flow out, and unique coins like ZEC are likely to be favored. Conversely, if the market plunges, it will be hard for it to stand alone.
Bai Yue's views and operational suggestions
My view is that the probability of a short-term upward probe is slightly higher. The reason is simple: the middle band of the Bollinger Bands is currently barely supporting the price, and the overall sentiment in the crypto market is slowly recovering compared to before, providing potential support.
However, we absolutely cannot act impulsively! What exactly should we do? Here are two approaches for you:
For aggressive players: You can start with a small position near $420 to build a base, and the key is to set your stop-loss properly, for example, just below the lower band of the Bollinger Bands at around $385. If the price can break through and stabilize at $443,
For conservative investors: If it breaks through $443 with volume and stabilizes, then look for opportunities to follow up. If it falls below and closes under $414, especially if it pierces through $386, then continue to watch and don’t rush to catch falling knives.
The market always has opportunities; the key is to operate calmly. Bai Yue will continue to monitor on-chain dynamics for everyone and move forward steadily together! Follow Bai Yue and participate in every attack by Bai Yue's villagers! Bai Yue will announce specific entry times and real-time news daily in the village!
