Tonight's ZEC market gives me chills. If you still hold ZEC or are thinking of bottom fishing, this article might save you once.
Don't forget the latest 'bomb.'
The news has popped out that the 'Bank of Japan has a 98% probability of raising interest rates in December.' The result will be out on the 19th. If confirmed, global liquidity expectations will tighten, and Bitcoin might tremble, let alone ZEC? The combination of sentiment and technicals could lead to a double whammy; I can't bear to imagine how grim that scenario would be.
Look at the hourly chart.
A clear downward trend. The price is pressed below the 410 key support level, short-term support at 357 is like a paper window, and below it is a big hole called 308. Although the MACD dead cross wants to turn into a golden cross, remember, a golden cross below the 0 axis is often just 'gasping in a downtrend', not a reversal signal.
Where is the key pressure?
Above, 470 is the first ghost gate, and 537 is the Mount Tai. With the current weak trend, the probability of a direct reversal shooting up is below 20% for me. The greater possibility is: a weak rebound to around 438, then continue to turn down. Why 438?
So where will it drop to?
In the short term, first watch the 410-357 range. Skilled players can take a small long position for a small rebound, quick in and out, don't be greedy. But the real test is at 357. If it can't hold, a downward slide to around 353 is just a mid-game break; once panic selling occurs, even 300 may not be the bottom.
What should players do now? Shengyi gives you three straightforward strategies:
For those heavily invested and stuck: Don't lie flat and play dead. If it rebounds to the 438-470 range and fails to break through, reduce your position! Drop to a level where you can sleep comfortably. As long as the green mountains remain, you need not worry about firewood.
For those wanting to catch the bottom: Keep your hands steady! The real opportunity to catch the bottom is not guessing the bottom, but waiting for the signal of 'stopping decline'. For example, if a long lower shadow appears near 308 along with increased volume, then that's when you should consider it. Reaching out now is likely to catch a flying knife.
For those watching with cash: You are the smartest. The best operation now is to do nothing. Wait for the direction to become clear; either break and hold above 470, and we buy more; or break through 308 and panic selling occurs, we pick up the bloody chips. Remember, the market never lacks opportunities, it lacks capital.
In fact, there is a key divergence hidden in today's volume indicator, which many people have not noticed. This is very likely to indicate the intensity of the next storm. Want to know what it is? Follow Shengyi and find the Shengyi Binance chat room: 【1143032750】 Tonight in the village, I will detail this 'invisible bomb' and track ZEC's movements in real time.
