Potential reversal to retest upper resistance (30% move)
Disclaimer: I am not a professional trader and this is not financial advice, just an idea of what I see. Crypto has a high risk/high reward ratio and moves faster than traditional markets. Only bet what you can afford to lose.
ETC has been trading sideways since end of June.
There's seems to be a double bottom that has formed on the support level.
We can see a falling wedge pattern that we broke out off about a week ago before falling back down, ETC is however for now bouncing off a strong shorter time support line.
Either of 2 things is likely to happen:
1: the current support acts as a trampoline and send ETC to retest a pretty big resistance level, effectively sending the price to touch the 200 MA. This would mean a 30% price gain from where we are now.
2: the current support breaks and we either bounce off the upper trend line of the falling wedge or we go retest the larger support area below. If the later happens, this would form a tripple bottom on ETC.
How I would trade this:
Enter a position at the current support level, your target is 30% higher. I would probably set a stop at around 52000 satoshis and get it to place a sell order at around 47000 satoshis. ETC has seen some pretty harsh sell offs in very short time periods (10-15% within 2 days) in the current falling wedge formation but it also each time bounced back up, you don't want to get your position taken out to quickly.
ETC has been trading sideways since end of June.
There's seems to be a double bottom that has formed on the support level.
We can see a falling wedge pattern that we broke out off about a week ago before falling back down, ETC is however for now bouncing off a strong shorter time support line.
Either of 2 things is likely to happen:
1: the current support acts as a trampoline and send ETC to retest a pretty big resistance level, effectively sending the price to touch the 200 MA. This would mean a 30% price gain from where we are now.
2: the current support breaks and we either bounce off the upper trend line of the falling wedge or we go retest the larger support area below. If the later happens, this would form a tripple bottom on ETC.
How I would trade this:
Enter a position at the current support level, your target is 30% higher. I would probably set a stop at around 52000 satoshis and get it to place a sell order at around 47000 satoshis. ETC has seen some pretty harsh sell offs in very short time periods (10-15% within 2 days) in the current falling wedge formation but it also each time bounced back up, you don't want to get your position taken out to quickly.
Comment:
ETC has bounced of the upper trend line of the falling wedge to return back to the short time support/resistance. We'll have to see what it does in the coming days.