Ethereum Set To Outperform BTC!!
Checking out Ethereum vs Bitcoin on the daily timeframe we see a confirmed Bullish Divergence! This pattern signals a reversal coming ETH, we have been in a clear short term downtrend from the highs in the beginning of september and we are finally set to explode against BTC, pair this with Bitcoin dominance starting to slide we could be looking at a mega run for the altcoins! We are currently holding the 0.3 FIB level and we do have support from the bollinger bands midline right below the 0.3 FIB. Something else to take note of is we are pretty close to that top bollinger band and i think if we see a grab onto here we could be sent flying to upside taking out key resistance on the way! Any way you want to look at this bullish divergence it is very very clear, we have been seeing multiple lower highs on price action shown by the green trendlines, we have them from the beginning of september all the way until now! Now that we just got confirmation from the stoch RSI we are set for a massive breakout to the upside in a matter of time, The way you can find divergences is simply by seeing lower highs on price action or higher highs or higher lows or lower lows and then seeing the opposite on an oscillator, i personally like using the stoch RSI. Basically if you see a uptrend line on price action and a downtrend line on the oscillator or vise versa, but keep in mind there are different meanings for each divergence so that is up to you to find out which one you are seeing! Taking a look at the MACD we are seeing on the histogram yet another increase for our daily bar which is a good sign and shows growing bullish momentum, we want to see this continue for that reason, if we do see a decline a bearish cross looms but always remember there is a chance it is a fakeout and we could see a rebound with another bull cycle on the MACD, Notice the MA's we are seeing good separation with the blue continuing to push upwards and moving further away from the orange MA, we also want to see this continue to play out because it lessens the chance of a near term bearish cross and it also shows an increase with the bull momentum! We have many targets we could talk about but the main one for me that i will talk about in a later TA when we actually see a breakout is the highs we saw at the beginning of september, this reversal along with the grabbing of the top bollinger band could most definitely send us up that far but that will be for a later TA as we still have a ways to go! But things are starting to look very very good for ETH and the altcoins and i woulnd't be surprised if we saw a mega altseason coming up in the near future! Not financial advice just my opinion!
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