TradeCityPro | MAGICUSDT Market Correction and Fear!👋 Welcome to TradeCityPro Channel!
Let’s take a look together at a so-called bloody day in the market, as some friends call it, with a quick glance at the chart to analyze the events and help you make more thoughtful decisions without acting on your emotions.
🌟 Bitcoin Overview
Before starting the analysis, as usual, let’s take a look at Bitcoin. On the 1-hour timeframe, Bitcoin is experiencing red candles with high volume, indicating that it is currently correcting on its higher timeframe.
However, this event is accompanied by an increase in Bitcoin dominance, leading to more significant altcoin sell-offs. Naturally, altcoins are seeing larger red candles and experiencing steeper declines. But does this mean that the trend is changing?
From my perspective, no, and as long as Bitcoin remains above $80,000, we are still bullish and have no reason to exit. These red candles are merely corrections, which are entirely natural, as the market hasn’t seen any significant profit-taking since Bitcoin broke above $73,000. Make logical decisions, and during a bull market, don’t sell your assets prematurely unless they hit your predefined levels.
🌞 Daily Timeframe
On the daily timeframe, MAGIC broke out of its 112-day range and resistance at $0.4302, moving toward the $0.7130 resistance, almost matching the size of its previous range.
Typically, the risk-to-reward ratio of patterns leads to the formation of significant support or resistance levels, shaping collective decisions.
After facing rejection and forming a lower high, MAGIC broke below $0.5573 and returned to the weekly box and support at $0.4302, which can act as a strong support for slowing down the bearish momentum and reversing it.
Currently, bearish momentum remains strong, and I refrain from buying during declines. However, if the support fails or the RSI re-enters its range, this could serve as a trigger for entry. For now, I prefer to watch, and if there is a significant reversal candle, it will be a pleasant surprise due to the strong momentum, with my stop-loss level already defined.
These conditions occur in bull markets and are completely natural. So, avoid FOMO and don’t let your emotions guide your decisions.
Practice risk and capital management, follow the analyses, and define your levels. For example, as long as Bitcoin remains above $80,000, I won’t sell and will even look for entry triggers. Futures positions currently make little sense, but if you have any, be sure to take profits and avoid greed!
📝 Final Thoughts
Stay calm, trade wisely, and let's capture the market's best opportunities!
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
