IOTA finished major 1st cycle and I'm assuming that we're currently in the beggining of second one.
Big wave 1 seems to be finished and we entered bearish wave 2. Now it's a tricky situation, because we're still in bearish market, and alts are moving very slow. Trading in a market like this one, is not for begginer traders as it's very difficult and tight stop-loss is a "must have". It's always easier to invest into bull runs and "join the fray" as everything is going up.
As market is bearish, we have 2 options available (for begginers):
- It's great opportunity to buy your favorite coins very cheap
- It's nice opportunity to check out some tactics and formations, which will help you evolve to be a better trader.
More advanced traders will play short positions or even play with leverage on some coins. But that's a diff. topic.
Back to IOTA: on 1h chart, I see 2 options here,
A) it's in wave "A" and soon wave "B" will start.
Waves seems OK, as every wave has 5 waves and there are 5 waves more in there, with ABC waves at corrections. So wave "B" can start shortly, if that 70.80 level will not be broken.
B) It's in wave "C" as "A" and "B" were sooner, and we're up for wave 1.
In a bigger picture it does not matter as we should be entering bullish move one way or another.
I have set some targets there for wave "B" or wave "1" at the strongest resistance levels.
If I'm taking a position here, I would play with tight Stop-Loss as mentioned earlier, below that 70.80 lvl. And I would wait for that "Falling Wedge" formation breakout.
IF price will fall lower, the next nice buy-in would be at the trendline below.
In my analysis I'm using Fibonacci Levels, Elliott Wave principles, Support and Resistance lines, Candle Patterns and formations, like Head and Shoulders or Triangles (latter more often than the former).
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