BZRX Has Shown This Confirmation Pattern, Time To Blast Off??
In the past few months, we’ve seen the rise of DeFi projects and how it has changed the landscape of how people view Cryptocurrencies. I remember when I first got into the know about Crypto, first words that echo-ed through my mind were: Scam!, Ponzi!, MLM! Well…not the best impression to say the least, for someone who eventually went on to become a full-time Trader and Technical Analyst in Crypto. As time passed, it is almost impossible not to notice the influx of traditional institutions into the Crypto scene, coupled with the fundamentally sound projects with the intrinsic nature to do good for the society, all in the good name of Decentralisation. As of now, I am proud to say, I am a believer. But hey, baby steps, I’ll slot in the occasional tidbits about my life when the vibes are right>)
Summerise BZRX in one Paragraph?
Let’s now turn our attention to this particular token that I’ve been laying my eyes on for awhile, BZRX. For those who do not know, BZRX protocol is a DeFi project that specialises in margin loans only. What’s interesting is that the team has came up with the notion of an insurance fund to safeguard the interest of the Lenders (in case the borrowers ends up defaulting). BZRX tokens serve the function of a governance token in the ecosystem, and the token holders holds the power to vote over the said insurance policy, as well as the management of the fund as a whole.
***But of course there are so much more functions this DeFi protocol brings to the table, so do knock yourself out and search it up online…AFTER checking the Technicals;) Now on to the good stuff…
Technical Analysis
Daily view
On the Daily chart, going through the step-by-step analysis from the top down, we see that:
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◾ Price is rejecting off the trendline drawn, drawn in a way that is the closest to the price action and without cutting any candle bodies.
◾ Taking Fibonacci from the previous AB wave, we see that price has since retraced to the crucial Fibo zone(between 61.8–78.6 level), as well as rejected off it (Fibo drawn this way as the wick of the red candle was rejected off the trendline, which then created a higher high).
◾ Current price is well above the 17EMA.
◾ Take note that the Daily Fibo -27.2 extension is around 0.635.
H4 View
Going down to H4, we start pick up on the little signs the candlesticks are telling us:
◾ Drawing another trendline from the highest point down, we have ourselves a triangle that just experienced a bullish breakout and even retested off the upper trendline of the triangle.
◾ 17&50 EMAs indicating bullish momentum and seems to be widening as well.
◾ Taking Fibo from the minor AB wave we see that price is rejecting off the crucial Fibo zone as mentioned and could potentially head towards -27.2 extension level.
→Switching to Linchart;
◾ A visible Double Top formation is formed, signaling a temporary retracement.
◾ Looking left we can find a horizontal significance level at 0.513, which almost lines up with the short-term -27.2 extension level.
Overview(Long)
This is the Bullish scenario that I will be expecting to see based on the H4 timeframe:
I expect the Double Top formation to be completed, making a temporary bearish move. However, seeing that the level 0.513 can potentially be the confluence(3) of Trendline, Fibo -27.2 extension, as well as Significance level, I would say the odds are highly skewed towards a bullish outcome.
Take profit level, as discussed during the Daily View, will be the -27.2 extension level, 0.635.
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