Eth:USD When BTC coughs all Crypto catches pneumonia
TL:DR - If BTC breaks higher then I am a buyer of ETH and BTC. Looking to buy at $600 (if BTC looks to be breaking out) or $525 if we get there.
This is the Eth:USD chart with 1 day candles. As discussed yesterday we have pierced the descending triangle seen on the 4h chart with conviction. I gave price targets of $650 and $525. I discussed we may bounce around $650 and retest the $700 line as we are apt to do with triangles and small timeframes. In crypto I've noticed we don't typical fully reach the old support on a retest and this may be what we are seeing now, a brief attempt by the bulls to retest old supports turned resistance. If this is the case then expect to see a further drop to $620 and below in the next 2 days.
I will discuss the medium term outlook charted above BUT right now I don't think the Ethereum chart really matters. Most likely Ether will do whatever Bitcoin does as BTC is at a crucial point right now. Bitcoin has a fairly obvious triangle formation in play and I suspect whichever way it breaks in the next 7 days, Eth will follow suit.
In terms of the chart above, there is no obvious pattern at the moment. We have a lower high and are currently in the middle of finding out if we set a higher low vs lower high vs ???. I have drawn a lower trend line from where Eth diverted its upward trajectory and went parabolic in November but it's really unclear if it has any meaning at the moment. I am a little disturbed by the fact that sell side volume is generally outpacing buy side volume.
My game plan is currently in flux. If BTC reverses then I am a BIG buyer. This is an aggressive position to take but I suspect a bullish move. However, I continue to watch for the previous projection of $525 as we currently test the $600-604 resistance.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
This is the Eth:USD chart with 1 day candles. As discussed yesterday we have pierced the descending triangle seen on the 4h chart with conviction. I gave price targets of $650 and $525. I discussed we may bounce around $650 and retest the $700 line as we are apt to do with triangles and small timeframes. In crypto I've noticed we don't typical fully reach the old support on a retest and this may be what we are seeing now, a brief attempt by the bulls to retest old supports turned resistance. If this is the case then expect to see a further drop to $620 and below in the next 2 days.
I will discuss the medium term outlook charted above BUT right now I don't think the Ethereum chart really matters. Most likely Ether will do whatever Bitcoin does as BTC is at a crucial point right now. Bitcoin has a fairly obvious triangle formation in play and I suspect whichever way it breaks in the next 7 days, Eth will follow suit.
In terms of the chart above, there is no obvious pattern at the moment. We have a lower high and are currently in the middle of finding out if we set a higher low vs lower high vs ???. I have drawn a lower trend line from where Eth diverted its upward trajectory and went parabolic in November but it's really unclear if it has any meaning at the moment. I am a little disturbed by the fact that sell side volume is generally outpacing buy side volume.
My game plan is currently in flux. If BTC reverses then I am a BIG buyer. This is an aggressive position to take but I suspect a bullish move. However, I continue to watch for the previous projection of $525 as we currently test the $600-604 resistance.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
Price is hovering in the $570-$605 range. I discussed that descending triangles often retest old support before moving lower as demonstrated here: www.forex-central.ne...cending-triangle.jpg
Crypto, being extremely emotional, usually doesn't retest the lower line of the triangle but another support somewhere else. I expect this is what we are seeing now and expect a further drop to the $530-$490 support area where I have set up buy orders.
If this market is extremely bullish (and Bitcoin bounces off the lower end of its triangle) then we could go up from here but I would need to see heavy buy side volume to believe it's the onset of a bull run.