Exciting Times Are Approaching Bitcoin and Ethereum
Bitcoin
Since yesterday’s column Bitcoin has shown a convincing penetration past the 3rd arc on the daily chart suggesting a test of the 2nd arc of the pair is likely coming. When/if that resistance is broken, I suspect we will see a rapid advance. (But let’s not get ahead of ourselves just yet.)
As you can see, the blue vertical line, which represents 180 degrees from the start of the rally 6 months ago, came one day after the spike low. I now believe that this spike low was likely the 180 degree low I was expecting (though it did not go as deep as I expected).
The 8-hour chart shows a similar picture. The 3rd arc pair is convincingly broken, AND we have a close above the 1×1 (45 degrees) from the swing high. Overall this is a bullish picture. However I would caution that until we get a close ABOVE the 3rd arc pair, we can’t assume anything. So, my advice is if you go long (which I would not argue with) don’t risk too much. The market might still get mean and cruel.
Ethereum
Ethereum is also showing signs of life. View the daily chart:
We are FINALLY seeing what looks like an imminent close above the 4th arc pair, just as we pass the end of the square. I didn’t anticipate it would take so long, but we may (perhaps) see a close above the arc pair as soon as this daily bar. When/if we get a close above the top of the square and the 1×3 angle ($11 would do it), this asset will likely get exciting. If you remember, yesterday we saw a chart that suggests Ethereum might out-perform Bitcoin, so be alert.
This close-up of ethereum’s daily chart illustrates that we are testing arc resistance. Will we get a close above? We will soon see.
Overall, it seems that we are rapidly approaching an exciting time for cryptocurrency traders.
Happy trading!
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
