SHOCKING! What a manipulated move on Ethereum and Bitcoin!
Dear traders.
In this analysis we appositely left in the chart the previous trendlines and targets.
We identified as the last resistance the red rectangle in the 160$ area: it was really clear to see that was a key level for Ethereum.
And the manipulators did an amazing job this time, here is why:
a) They destroyed with incredible power all the resistances, and it seemed like also the biggest resistance at 160$ was left behind. This means that every breakout trader bought over 160$, giving them good liquidity to close their orders.
b) Once the manipulators sold successfully their position, what is better than an illiquid Sunday night to make the market dump and buyback?
In short words, they made you believe this was time for a reversal and then smashed it 15% down.
PREDICTION
But let's focus on the future: what's next?
This leg down has two possible scenarios
1) Bullish:
the reversal could be near, and they crashed the market to create more incertainty and fill their bags more. The market seemed quite confident in the previous week (look at LTC, NEO or ETH), and if we rally up 10$ dollars we could have the same power as before.
2) Bearish:
Unfortunately 70% of the times I saw this pattern, a second leg down (and sometimes also the third one) is likely to happen. If we can't manage to keep the price over the support line, then another 10/15$ leg down is very likely.
Please, let us know your thoughts on this idea!
Trade safely
BFCM
In this analysis we appositely left in the chart the previous trendlines and targets.
We identified as the last resistance the red rectangle in the 160$ area: it was really clear to see that was a key level for Ethereum.
And the manipulators did an amazing job this time, here is why:
a) They destroyed with incredible power all the resistances, and it seemed like also the biggest resistance at 160$ was left behind. This means that every breakout trader bought over 160$, giving them good liquidity to close their orders.
b) Once the manipulators sold successfully their position, what is better than an illiquid Sunday night to make the market dump and buyback?
In short words, they made you believe this was time for a reversal and then smashed it 15% down.
PREDICTION
But let's focus on the future: what's next?
This leg down has two possible scenarios
1) Bullish:
the reversal could be near, and they crashed the market to create more incertainty and fill their bags more. The market seemed quite confident in the previous week (look at LTC, NEO or ETH), and if we rally up 10$ dollars we could have the same power as before.
2) Bearish:
Unfortunately 70% of the times I saw this pattern, a second leg down (and sometimes also the third one) is likely to happen. If we can't manage to keep the price over the support line, then another 10/15$ leg down is very likely.
Please, let us know your thoughts on this idea!
Trade safely
BFCM
Comment:
We managed to go over the trendline. Everything over that trendline is quite safe. Sell if we break that.
