This is a working theory, not a trade signal, and not a trade recommendation.
I'm not claiming this will happen, but I see it as one of the possible scenarios.
I'm not claiming this will happen, but I see it as one of the possible scenarios.
I have not taken a position in any crypto markets yet because at the time of the original posting of this idea, I was hoping for a more violent move below 100 USD in Ether.
It is now becoming increasingly hard to predict the exact bottom of cryptocurrencies.
The levels I am looking at to scale into a position are the following:
BTC 2500 - 1500 USD
ETHBTC 0.026 - 0.015
From this, the calculated lowest point for Ether is:
ETH 67.5 - 21 USD
The area just above 50 USD for ETH is very significant because at the start of the monumental rise in Q1, 2 of 2017 Ether first rose twice to about 55 USD, and then fell back to about 42 USD. The price then had a strong upward grind over 50, and ultimately broke upwards significantly after crossing about 60 USD.
The second strong area of support is just above 20 USD. This was the highest price in The DAO madness times and we all observed the rise over 20 USD with disbelief when it was breached in March 2017.
In general, I am observing a number of ratios of time and price that all seem to indicate that we could be approaching a bottom of this cycle with an increasing speed.
Namely, the time between December 25 and January 15 seems to be an incredibly reliable pivot time a cross all crypto markets. You can observe it yourself on all major USD pairs.
Good luck and happy trading.
PS. And remember, after the wash and the bottom comes side action, I think it's reasonable to expect 2019 to be a bottom grind, side action, ICO capitulation and mass abandonment year. There is some hope for 2020 to be a new bull market catalyst year with another BTC halving incoming.
With that in mind, please do not expect to see the markets to just rebound instantly to levels above 6000 USD for BTC and over 100-400 USD for Ether, keep your trade take profit percentages realistic.