Market watchlist: Doubling down on the barbell strategy

Key points

• Focus: The watchlist is focused on key levels and scenarios to play if and when they arise.
• Market uncertainty: The market can be unpredictable, and opportunities might not always unfold as expected.
• Alignment: The watchlist helps us stay aligned and focused on common goals heading into the week.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Overview of the week

This week, we have seen a 30% sell-off in BTC, with the market going into an emotional meltdown.

This is not the time to panic and be shaken out, but it's also not the time to be hasty and start aimlessly firing capital into unfocused places. We have adopted a winning formula this cycle in the form of the barbell strategy, and this week, we are honing our focus on these assets to optimise effective decision-making and take full advantage of this opportunity.

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Trading levels and opportunities

Bitcoin (BTC)

• Hypothesis: We see this as a major exaggerated pullback, which needs some settling and balance. We are now looking at major relevant levels, historically and recently, to place bidding levels. $56k was a major floor level, so trading beneath that level is viewed as a great opportunity to accumulate more of the king.
• Key level: $50,000 | $56,500
• The play: Place limit orders to actively monitor price to execute spot buys at the given key levels.

Ethereum (ETH)

• Hypothesis: We believe ETH is set up nicely for a long-term swing here, with the price being magnetised to the 61.8% retracement region of the recent bull market swing from the October lows to the recent swing high. Off the back of this sell-off around $2200, if the price can settle here, this could be a great place to build an ETH position to hold for the next leg higher. The asset has some great positive catalysts surrounding it, and with it already being an established giant in our market, it's a great risk-reward bet at this level.
• Key level:$2,200
• The play: You can begin to build a position anywhere within this price region, as from an opportunity cost point of view, the larger price region is deemed undervalued. Setting a limit order at the key level is also a good play.

Solana (SOL)

• Hypothesis: Solana's structure is easy to understand, as we are only now trading at the bottom of its big picture range, which is formed by the highs of around $190 and the lows of $120; this shows strength within its context relative to the rest of the marker.
• Key level: $120-$130
• The play: Build a position between the two key levels. Use it as a buy box region.

Popcat (POPCAT)

• Hypothesis: We are not worried about this pullback in Popcat. We anticipated this possibility when it set its new all-time high, purely because of the nature of this asset. Based on what it has done in the past and what it may continue to do in the future, we use the past to prepare ourselves. This is nothing more than a rinse-and-repeat formula.
• Key Level: $0.2200 - $0.4000
• The play: Build the position between the ley levels. View it as a buy box.

DogWifHat (WIF)

• Hypothesis: We view WIF as one of the best plays in this cycle, especially based on where we are trading now. This is why we have such a vague buy box for this asset, which stretches over a dollar in price. Accumulating within this price region is a great RR bet.
• Key Level: $1.000 - $2.000 
• The play: DCA within the box region.

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Cryptonary's take 

Now is not the time to panic. The markets never provide smooth sailing.

You have to stay calm and composed and adapt your strategy to optimise and maximise the areas of your portfolio that are most needed and where the best opportunities lie.

Here, we dial into the barbell strategy this week until things change.