Following our members QNT call at $40 defying the odds against the current bear market, and netting 100%+ in profit from the buy zone given, an opportunity has arisen to provide an educational viewpoint of this coin which can be taken into perspective on other coins trading in a similar nature.
Whilst we will not disclose publicly how we obtained this short-term buy level, a lot can be learnt from this chart (Weekly Perspective). All we will say is that we have advised to bank the 100%+ profit if they wish. A beautiful result considering most are actually down almost 100% at this very moment in time.
Looking at the historical behaviour of this weekly chart, a timeframe which many forget to study, you’ll notice the key critical turning point and confirmation of the bear market was initiated upon the break of the $150 - $153 support level. An area where most other ‘analysts’, ‘experts’ and ‘mentors’ were claiming to be the “generational lows” and starting point of a new bull market.
This was obviously a very clear trap to the trained eye, where price started to create a level of support almost 50% of the way down from ATH’s and 50% of the way up from the very lows. Naturally, making an investment at such prices is arguably insane and signing your own death wish. Market makers understood that the majority would be buying at this level, which is represented by the huge bearish candle ripping through the $150 support floor to wipe the greedy bulls clean out of the market. You’ll then note upon the closure of the bearish weekly candle, the market suddenly reverses back to the upside.
Why is that?
Because at the very moment that weekly candle closes, the fear generated from the “generational lows” dream being crushed resulted in most participants being either liquidated or completely REK’T on their holdings. At that very moment, they switch bearish, which is when the market plays its next trick on the masses and instantly reverses back to the upside. The once bulls-turned-bears suddenly panic and buy once again, not realising price is simply pumping to retest this critical broken level as resistance, signalling confirmation a new wall has been created and bearish dominance is likely to resume to mirror the process upon the next drop lower.
Fast forward to the present day and you see the exact same pattern forms, where the $100 - $95 floor begins to create a new level of support, exactly where the terrified bears sold upon the closure of the weekly candle that broke $150 in January 2022. Textbook psychological traps. With the $100 level being a key psychological level, the moonboys once again scream “generational lows”, buying in a frenzy at this floor without realising much worse awaits them down below. As long positions build at $95 - $100 you’ll notice a small rally commences, once again bringing in more and more leveraged buyers pursuing the bottom.
After all, why would they let the retail buy so cheap?
At least that’s what they thought...
Upon $95 being broken to the downside, the process is repeated. The final low available on most charts was $56.50... a level you were told would never be seen again. Due to these delusional beliefs, greedy bulls panic sell once again as they witness low after low being obliterated, and the all-time low wiped out in the process. It’s at this very moment of mass panic-selling that the market becomes the strongest, hence why our members were given the $40 zone... as we new that most would be on the brink of collapse at this point, which is the exact time you want to be buying.
Out of nowhere, a huge weekly candle explodes to the upside...
Where did this come from?
Take a look at where the pump peaked, an exact mirror of the $150 support break and retest witnessed from January - March 2022. Price is merely returning higher to retest broken support turned resistance. Most will now believe the bull run is back, as they always do. They will start to buy now once it’s already too late, in pursuit of instant gratification and FOMO.
Do you see a pattern with those bullish candles on this weekly timeframe? Do you see how they function for different purposes in a bear market?
Another drive higher looks likely, as price will seek to play around this critical level of resistance and push the greedy into buying again. Whilst I will not disclose our actual sell targets given to members, another breach higher will bring back the bulls, which is where we will once again do the opposite and sell against the top buyers.
This short-term relief rally to the upside now brings a new focus to attention...
Is the $40 floor the bottom? Could it possibly go lower?
I’ll leave you with this...
If the remainder of the market has the possibility to go much lower, what do you think will happen to the $40 floor upon being revisited in a bear market?
The clue lies within the chart provided.