Cryptocurrency Update (Correlation)- March 23rd

Cryptos didn't hold the .382 fib support line that I had thought and fell to just above the .5 support line. We have seen a nice bounce back by many of the cryptos.

1 Hour Chart: NEO

Looking at NEO you can see the breakout of the downward channel and pull back towards the line. Expect to see a sharp impulse move out of this that should be the start of the next major impulse move upward. As I always reiterate if you are trading these moves to follow the moves with protective stops and make sure to take profits out as you go. This is a very volatile market with extremely sharp impulse moves in both directions. Be careful and wait for setups before entering any position and stay grounded to your game plan and rules.

I would like to take a minute to share an interesting coincidence or occurrence I have seen within the crypto marketplace. Yesterday I was waiting to see this big move upward in the markets thinking it would rebound off the .382. I had my stops in place and everything looked good to go up but there was the feeling that the markets would react to stock market news in how they crashed yesterday. I placed my stops right at break even and sat back watching.

1 Min Chart: BTC

This was the point where the market was going to make a decision and I placed the stops right below this point and waited for the market to decide. When it broke to the downside it took out my stops and plummeted down.

5 Min Chart: NEO

This might be the most interesting news out of yesterday and today's action however. Looking at this chart it just seems like any other however, if you notice the timing of the when this move happened, 3:35 am Hawaii Standard Time. Which is 5 minutes after the opening of the NYSE. You can see that when the markets rebounded in the stock market and the indexes started to climb, the cryptos acted right behind them seeing massive surges upwards thus ending the bearish trends. This works as a great indicator for us traders in the crypto world as we can see how the markets move the crypto markets and we can play our positions off of this news.

If you have any other thoughts or ideas about the cryptos please share in the comments below I am always interested in hearing other opinions. As always have a great day and a better one trading!