Ethereum / BitcoinShort
A fractal, a double top, and some buyer exhaustion
Updated
I've been mulling over this double-top fractal possibility since August. Quite interesting!
At first it looked like Eth/Btc was having a strong bull flag break to the upside, but more and more I think I may be right in that we are going to head all the way back down to the monthly 21 ema first - and perhaps even below it - before the breakout-level gains are to be had here.
Over the next month we could travel all the way back down to the bottom of the massive triangle Eth is building, which is currently located around $2000. This is confluent with my idea on Btc.D, where I said that on the week of November 15th we will see Btc dominance at 53%. That idea is playing out well so far, as dominance continues to rise.
If bitcoin does go on to break the all-time high soon as many expect, this pair may still fall in the short term. Eth can continue to create sideways and even upward action, after which - upon a breakout - Eth has targets of $5,500 and $7,000, respectively.
If bitcoin falls however, Eth will suffer large losses. The weekly volume profile on Eth looks exhausted, with decreasing buy volume and increasing sell volume weeks.
In either case, it appears a return to .045 on the Eth/Btc chart is still on the table.
Weigh the risks and invest accordingly.
At first it looked like Eth/Btc was having a strong bull flag break to the upside, but more and more I think I may be right in that we are going to head all the way back down to the monthly 21 ema first - and perhaps even below it - before the breakout-level gains are to be had here.
Over the next month we could travel all the way back down to the bottom of the massive triangle Eth is building, which is currently located around $2000. This is confluent with my idea on Btc.D, where I said that on the week of November 15th we will see Btc dominance at 53%. That idea is playing out well so far, as dominance continues to rise.
If bitcoin does go on to break the all-time high soon as many expect, this pair may still fall in the short term. Eth can continue to create sideways and even upward action, after which - upon a breakout - Eth has targets of $5,500 and $7,000, respectively.
If bitcoin falls however, Eth will suffer large losses. The weekly volume profile on Eth looks exhausted, with decreasing buy volume and increasing sell volume weeks.
In either case, it appears a return to .045 on the Eth/Btc chart is still on the table.
Weigh the risks and invest accordingly.
Note
My btc.d idea
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