In the world of Bitcoin and altcoins, one of the best decisions a crypto investor can make is to avoid trading certain cryptocurrencies. This is particularly true during times of uncertainty and when it’s unclear what the trend is. For example, trading on overbought or oversold signals without clear indicators of a trend reversal can lead to unfavorable outcomes for a crypto investor. It is also important to pay attention to assets trading at key supports or resistances. Therefore, it is advisable to stay away from them until they break out or revert. Here are the ones to avoid in the coming week.
Bitcoin
At the top of the list is BTC. It may be a good strategy to avoid trading Bitcoin (BTC) at the $52,000 resistance level. BTC is testing a significant resistance around $52,200. This area acted as a major price support and resistance throughout 2021.
Following the uncertainty, Bitcoin has recorded low exchange volume since entering this narrow range on February 14. Now that anything is possible, BTC could either retract from a bull rally or continue its upward trend. The best move here would likely be to wait for the definition of the next price movement.
Altcoin Arkham (ARKM)
The cryptocurrency Arkham (ARKM) is in an ‘overbought’ momentum. From another perspective, Arkham (ARKM) is trading with a Relative Strength Index (RSI) indicating overbought conditions in four different time frames. This is usually an indicator of excessive strength seen in bull markets.
However, if the cryptocurrency begins to lose momentum in lower time frames, overbought conditions often precede a trend reversal. So far, ARKM does not show signs of reversing the trend. Yet, the RSI is at a high enough level for a sudden correction. Therefore, investors should avoid trading Arkham at these prices, which have seen a 23.16% increase to $0.82 in the last 24 hours.
Jupiter (JUP)
Jupiter (JUP) is in an ‘oversold’ momentum. Accordingly, Jupiter (JUP) has a daily RSI value of 29.94, indicating ‘oversold’ conditions. JUP is trading at $0.517, down 0.29% at the time of writing. Interestingly, Jupiter’s 4-hour RSI is neutral. This development suggests a trend reversal and potentially a buying signal.
JUP‘s other downside is the team’s move. The team recently conducted a large airdrop for the token, creating additional risks for JUP. Therefore, investors should closely monitor the cryptocurrency’s movements in the coming week.
