This is just like August 2024. In the sense that a major low has been hit for many Cryptocurrency pairs.
Back in August, the major low led to strong bullish action, on some pairs.
Now, in December, the major low hit recently signals the start of a new major bullish wave.
Just as it happened in August, many pairs grew strongly but others continued to consolidate (sideways).
Some pairs even moved lower and went on to produce a lower low rather than going up. That’s why we have to be wise when choosing which pair to hold.
To spot the pairs that will grow just notice the volume and the chart structure.
Try and notice how high they went compared to their 2021 All-Time High. Those that produced only a very small bullish wave recently, these can move strong. Those that produced major growth and new ATHs, these can either go sideways or crash all-together.
So the energy is moving to those that are yet to shine, which is normal. The market moves in groups.
First one group, then another one and so on. This process will go on for years… Until the entire market is 10-20 levels higher up.
Those that already grew strong, trading high/near resistance, from these, stay away.
Those that are low and produced little grew, these might be better to buy for this bullish wave.
Being low is not the only requirement to choose a pair. You can look for a break above local resistance, trading above certain moving averages, volume and how the pair performed in the past. You can also use your intuition to make the right choice because sometimes a pair is about to move strongly but the chart looks bad.
To engage your intuition, just see if you get any reaction when you browse through a list of pairs. If there is some sort of feeling, a mental impression or familiarity with a pair that is doing nothing, it might mean it will do something in the future. This part should only be used once you are really advance at spotting the signals.
If you can pick the bottomed out ones successfully, then you can try to improve by adding the intuitive aspect. If not, keep practicing on the basics.
On this chart, we have the rounded bottom and recent higher low. The oscillators show a strong, long-term bullish divergence. On the daily timeframe we should see a break above several important EMAs, etc. And again, volume of course for confirmation.
By the way, I already did it for you… Here is another one.
Thank you for reading.
Namaste.