Bitcoin (BTCUSD)
Above: Bitcoin (BTCUSD)
Broader risk-on markets have experienced a reduction in participation and weakness across the board. Bitcoin has dropped below the near term support level of the Tenkan-Sen. The next support level in the Ichimoku system for Bitcoin is the Kimun-Sen at $40,0092. As Bitcoin moves lower, it will be able to move lower faster. The volume profile thins out considerably until it reaches the top of the next high volume node at $40,625. It could take roughly four more days for Bitcoin to travel to the next support zone at $40,000. The Kumo Twist occurs on August 21st, 2021. It is very likely that if Bitcoin is trading at $40,000 on August 21st, then we could see a resumption of the prior uptrend.
Trade idea: Buy Limit at $40,600
ChainLink (LINKUSD)
Above: ChainLink (LINKUSD)
ChainLink is currently testing its closest support on against the Tenkan-Sen at $26.43. The 2021 Volume Point Of Control is at $24.48 while the Kijun-Sen and Senkou Span B (top of Cloud) share $23.09. There is an upcoming Kumo Twist on August 28th. ChainLink could trade sideways for the next eleven days, oscillating between the Volume Point Of Control and the Kijun-Sen before moving resuming its prior uptrend.
Trade idea: Buy Limit at $23.93
VeChain (VETUSD)
Above: VeChain (VETUSD)
VeChain, like ChainLink is facing pressure against the Tenkan-Sen and struggling to hold it as support. At the present time, it is trading slightly below the Tenkan-Sen. Again, very similar to ChainLink’s chart, VeChain has a shared support level at $0.1055 where the Kijun-Sen and Senkou Span B (top of Cloud). However, VeChain may not find support against that level. The next Kumo Twist for VeChain occurs in fourteen days on August 31st, 2021. If we assume the Lagging Span will behave as expected, then the Lagging Span will find support at the same price level of the Kumo Twist ($0.084) in roughly the same amount of time. The 50% Fibonacci Retracement is just below at $0.082.
Trade idea: Buy Limit at $0.088
Stellar (XLMUSD)
Above: Stellar (XLMUSD)
Stellar’s Tenkan-Sen and Kijun-Sen are in close proximity. Even closer together is the Kijun-Sen and Senkou Span B, both sitting at $0.342 and $0.3198 respectively. Like VeChain, Stellar’x next Kumo Twist occurs on August 31st, 2021. It would be perfectly normal behavior for price action to follow the top of the Cloud (Senkou Span B) lower until the Kumo Twist date, where it would likely find a resumption of the prior uptrend. The key to determining whether the trend will continue higher will be dependent on the Lagging Span. If the Lagging Span drops below the candlesticks and the Cloud, we may likely see a spectacular sell-off.
Trade Idea: Buy Limit at $0.276