Pivot Targets for 2023 in the Crypto Market or Where should your trade be?
what can you expect from 2023 in terms of trading targets/profits in the crypto market and how this information can re-balance your portfolio according to Pivot theory
I have been postponing this now for more than a month, but now the time has come to take a deeper look at this year’s targets based on Pivots trading theory. If you’ve been here before you know that I am a big fan of Pivots in trading and you probably also know a thing or two yourself about Pivots. If you’re new here and want to understand why I am Pivots obsessed, please go and read some of my back stories, and also see how they played out - some better than others.
It’s suffice to say that Bitcoin loves obeying to Pivots. And that the crypto market as a whole adopts the leader’s influence. Even if in some crypto assets pivot theory is less effective, it is enough many times to look at Bitcoin’s price behavior to project meaningful support and resistance levels on other crypto assets. Pivots serve as a map working not only in 2D but also on the time axis, with the ability to point towards the future.
Now let’s get started with the Market Boss. Below is the Weekly chart for Bitcoin. It has the Yearly Pivots plotted on it with the first Quarterly Pivots. If you have been using Pivots, you might be surprised to see the Yearly R10 and rightly so. There are usually no more than 5 levels for pivots but I took the liberty to rewrite the indicator in a script that plots 10 levels to each direction. The main reason for that is the ballistic explosive nature of this market that has been on regular basis leaving the R5/S5 way behind in times of bull insanity. If you want a deeper dive of this indicator, it’s here.
So what can we tell about the Crypto market looking at Yearly & Quarterly pivots so far?
We can tell that Q1 is signaling bullishness. Price at the beginning of the year conquered the Quarterly Pivot hence Price action is bullish. We can see that for the second week of February, Bitcoin’s price has been rejected on the Q1 R2. So indeed this quarter is showing strength.
But the Yearly pivots are still in disagreement.
Price needs to bust through the Yearly Pivot on the $26.8k to declare this year as one having turned bullish on the higher time frame. Before this happens any bearish scenario continuation for this year is still valid. And as I’ve plotted this in red, the two most likely bearish scenarios for this year are falling either from here, or from failing to conquer the Yearly Pivot, to the Yearly S1 at $5.2K.
At this point of time I am less inclined for such a bearish scenario playing out. I can see another year of chop and base building or pivoting to a full bullish year as more likely scenarios.
So let’s talk about the green price action prediction. I have chosen to plot there three high probability options. If indeed price breaks above the Yearly Pivot it is highly likely to go at least to the Yearly R3 at ~$71k. I have seen this happening in many markets through the years. A break above Pivot and the 3rd Resistance is most likely to be tested.
If price decides not to stop there, it is highly likely to see it testing the R5 at $94K and if this becomes a blow off year aiming for moons and such, you will see the Yearly R10 touched or even left way behind as historical Price action taught me in the past. But the R10 will still serve as a guidance level, charting a price of $150K and above.
OK. That mapped the year in terms of BTC targets and trends clarity. But what about the rest of the market?
In past years I have plotted lots of charts of many assets at the beginning of the year showing profit/loss potential, but this time I am going to simply skip directly to a table.
In it, I am comparing the different down and up sides of crypto assets as projected by Pivots. You can go and read my last years beginning of the year chart predictions to decide by yourself how well did they play out. The reason I am doing this is to have access to a better decision making process when it comes to building a Crypto portfolio. What I mean by that is simple: If Bitcoin is offering an implied trade of 210% to the Yearly R3, then Ethereum is offering the same target trade with a return of 275%, while Kusama is offering on the same trade 1310%. So in which trade do you want your money to be? Or even better, ask yourself in which kind of asset allocations do you see your trading portfolio?
To be clear, I am not in anyway telling you how to allocate your portfolio. If you choose to chase only the highest possible profit then I respect that, but it might also be exposing you to a much higher risk. Not to mention that non of those trades are guarantied. There have been times in the past when Bitcoin was moving to the R3 and beyond while the whole crypto market was like a deer in the headlights. So it’s up to you to balance, re-shuffle or do nothing with this new information I’m providing. You do you, yes?
I have took here a tiny sample of what the market has to offer and put it into the table. If you are too lazy to use my “Unseen Pivot” script on trading view and want me to check for you a specific crypto asset, I’d be happy to do it on my own pace and publish all requests together in the near future. But in the mean while, that’s what I’ve got for you so far:
