Bitcoin made a clear breakout. I think its next target will be 96K and this level is very important for showing a strong rally and especially for giving good movement to altcoins.
As you can see now, a bullish rally can be seen in all coins in crypto. In the same way a good movement can also be seen in #HIVE and #STEEM coins.
As I have also shown in the image there is a comparison between HIVE and STEEM. At this time, STEEM is performing much better than HIVE. But the good thing is that both have a very good correlation which helps make my hedge strategy successful.
I want to highlight something about the strategy.. I have already put HIVE and STEEM on my favorite list and I take the best benefit from this. I have also shared many blogs about this before.
I want to give a short review of how I apply this strategy. Simply when I see that one of the coins HIVE or STEEM has more movement I simply short that one and I long the one that moves less. I continue to keep this hedge and wait.
Within a few days my positions, overall in the form of an index bring me into the profit zone.
This HIVE and STEEM hedge strategy is more beneficial when a pumping scenario appears. I see that HIVE has pumped twice the value of STEEM. In that situation I short HIVE and long STEEM and through this hedge I have already received very good profit.
Just a few days ago I also showed you the backtest results of this where you can also check my win rate.
As shown in the image there is a comparison between HIVE and STEEM. STEEM’s movement is much better compared to HIVE but I see a very big weakness in STEEM’s chart and that is its wicks.
You can see that in STEEM candles you will see more wicks compared to HIVE. A candle that has more wicks is not more powerful and is not usually long term.
If we talk about HIVE’s candles, wicks are also present but not as much as STEEM. Its body structure is also very strong.
If I talk about both, their comeback is very good. The good thing is that both altcoins are following Bitcoin and my view is that if Bitcoin tests the price of 96K level then a very good rally can be seen in HIVE and STEEM and from here, their price can also move to the top.
HIVE PATTERN IS STRONGER
In the second image you can see that I have shown a HIVE clear scenario, where you can see a clear resistance line for HIVE. It has also been tested multiple times and that is around the 0.11 mark.
If Bitcoin’s price goes to this level HIVE can test this resistance line which has a very high chance and this is around a 95 percent move.
SHORTING STEEM WILL BE PREFERRABLE
On the other hand if you look at the 3rd image, STEEM’s same scenario according to the same timeframe is a much weaker pattern. If a rally happens STEEM’s move could only be around 70 to 75 percent while HIVE can show an extra 22 to 25 percent move.
So looking at the charts of both, in the long term my decision would be to keep HIVE long and STEEM short.
If Bitcoin shows a strong rally then both of these altcoins will also have to test their resistance and in this situation I can get a 22 to 25 percent gain.
This is my analysis and my thoughts regarding these two altcoins. If you want to enter this trade, definitely do your own analysis and research properly before taking any trade.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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| EDITING TOOL | CANVA |