The altcoin market appears poised for another short-term drop, so exercise caution before buying. Expect volatility for Bitcoin (BTC) around the upcoming FOMC meeting, which could create a significant dip followed by a strong buying opportunity. A potential short trade on Solana (SOL) is setting up with a price target of $184, triggered by a break of its immediate upward trendline. Similarly, a break below the current trendline for Cardano (ADA) could signal a short opportunity, targeting a drop into the lower $0.60s. The overall strategy is to wait for confirmation of these downward moves before looking for a market bottom to buy.

Bitcoin (BTC)

• The speaker is confident that Bitcoin is still in a long-term bull market and will eventually see new highs.
• However, in the short-term, the market is in what he calls a "bear phase," which is characterized by choppy, sideways price action, volatility, and uncertain trader emotions. This is a period for active trading, not long-term holding.
• He anticipates one more drop before a significant bounce. The upcoming FOMC meeting is a key event that could trigger this move, potentially with a sharp drop followed by a strong recovery.
• A key price zone to watch is $110,000 to $111,000. This area is significant because:
  • There is a CME gap that often gets filled.
  • It aligns with a key "momentum trend line" on the chart.
  • It represents the "mid-range" of the recent price wave, which is a critical support/resistance level.

Takeaways

• Short-term traders should be prepared for a potential drop in Bitcoin's price towards the $110k - $111k level, especially around the FOMC announcement.
• A break below the current near-term upward trendline would be a signal to consider a short position.
• A bounce from the $110k - $111k area could present a strong long (buy) opportunity.
• The speaker emphasizes a "non-prediction" strategy: wait for the chart to confirm a direction (e.g., by breaking a trendline) before entering a trade, rather than guessing the outcome of the FOMC meeting.

Zcash (ZEC)

• The speaker highlighted a successful short trade he took on Zcash, turning a position into a $13,300 profit.
• The trade was initiated because Zcash had reached its all-time high (around $375) and showed signs of rejection (failing to hold the new high and falling back below it).
• He emphasizes that he did not short the token while it was moving up fast. He waited for it to settle at the top and break a key upward trendline before entering.
• The speaker also shared that he was initially stopped out of a similar trade for a loss of around $3,600, demonstrating the importance of risk management and the willingness to re-enter a trade if the setup is still valid.

Takeaways

• Trading assets at their all-time highs can be very profitable but also very risky. A common strategy is to wait for a "fakeout" or rejection at the high, followed by a break of a trendline, to signal a potential reversal.
• This is an example of a high-risk, high-reward trade on a volatile altcoin. The speaker managed risk by "laddering in" (not using his full position size at once) and using a stop loss.
• After the current downward move, the speaker will be looking for a long opportunity on Zcash once the downtrend is broken and a new upward trend is established.

General Altcoin Market (TOTAL3)

• The speaker uses the TOTAL3 chart (total crypto market cap excluding BTC and ETH) as a barometer for the entire altcoin market.
• His current outlook is short-term bearish, and he expects one more leg down for most altcoins.
• This is because the TOTAL3 chart broke a major upward trendline and is now retesting it from below. A rejection from this level would confirm the bearish outlook.
• Once this potential drop plays out, he will look for a bounce and a break of the new downtrend to signal that it's time to be bullish on altcoins again.

Takeaways

• The overall altcoin market appears poised for a short-term drop. This suggests caution for anyone holding or looking to buy altcoins for a short-term trade.
• Traders can use the TOTAL3 chart as a guide. If it starts to break its current downward trend, it could signal a broad recovery across many altcoins.
• The strategy is to wait for confirmation. Don't try to "catch the falling knife." Wait for the drop to happen, for the price to find a bottom, and for a new uptrend to be confirmed before looking for buying opportunities.

Other Investment Opportunities

• Hedera (HBAR): Despite a recent strong pump, the speaker is looking for an opportunity to short HBAR. He likes trading volatile coins but will wait for a bearish setup (like a rejection at resistance) to appear.
• Solana (SOL): A potential short opportunity is setting up, with a target of $184. A break of its immediate upward trendline would be the entry signal.
• Cardano (ADA): The speaker sees a potential drop to the lower $0.60s. A break of its current multi-touch trendline would be the signal for a short trade.
• Dogecoin (DOGE): A drop to the $0.185 - $0.19 area is possible. However, the speaker noted it's not his favorite short setup because it lacks a recent bounce.
• XRP (XRP): Mentioned briefly as looking "nice and strong recently," but no specific trade idea was given.
• Gravity Exchange: The speaker mentioned that users who trade on the Gravity exchange can "trade for airdrops," suggesting it as a way to earn a potentially valuable airdrop while actively trading.