Further recovery for BTC, ETH pairs and other cryptos
Updated
I've been thinking for a long time we would see more downside for cryptos, following BTC down the drain.
I always check several pairs and look for correlation and many times when BTC doesn't show a clean pattern, I can find it in ETH or LTC.
The whole crypto scene is watching BTC ranging in a certain zone and we see predictions to both sides of the charts. When checking BTC chart I do see a potential break out to the upside but I will turn bullish once we crack $8.500
On the ETH charts however, I can see very clearly bullish pennants which are continuation patterns. I see a clear reversal, impulsive move to the upside, followed by a correction.
I would expect this correction to be in 3 legs, but could also turn in a more complex structure and forming a 5 legs cycle.
Indicators are also showing bullish divergence over a longer period and strengthen my ideas about a bullish break out. In that case, that won't be only for ETH but I expect for the majority of all crypto pairs.
How to trade? Wait for the break out, we already saw a trial yesterday but I do expect a violent move.
I'm alreayd long ETHUSD with a SL on entry as I expected the break out to be happening yesterday. Many pairs got rejected at trendline or fell back in their patterns immediately, but I still do expect the move up as current pull backs dont look like aggresive moves to the downside. If we do see 1 more move to the bottom of the pennants, one could go long on a good bounce from the bottom of the pennant.
A safer play is to wait for the break out as this pennant is likely to play out, but crypto never gives you a guarantee ;-)
I always check several pairs and look for correlation and many times when BTC doesn't show a clean pattern, I can find it in ETH or LTC.
The whole crypto scene is watching BTC ranging in a certain zone and we see predictions to both sides of the charts. When checking BTC chart I do see a potential break out to the upside but I will turn bullish once we crack $8.500
On the ETH charts however, I can see very clearly bullish pennants which are continuation patterns. I see a clear reversal, impulsive move to the upside, followed by a correction.
I would expect this correction to be in 3 legs, but could also turn in a more complex structure and forming a 5 legs cycle.
Indicators are also showing bullish divergence over a longer period and strengthen my ideas about a bullish break out. In that case, that won't be only for ETH but I expect for the majority of all crypto pairs.
How to trade? Wait for the break out, we already saw a trial yesterday but I do expect a violent move.
I'm alreayd long ETHUSD with a SL on entry as I expected the break out to be happening yesterday. Many pairs got rejected at trendline or fell back in their patterns immediately, but I still do expect the move up as current pull backs dont look like aggresive moves to the downside. If we do see 1 more move to the bottom of the pennants, one could go long on a good bounce from the bottom of the pennant.
A safer play is to wait for the break out as this pennant is likely to play out, but crypto never gives you a guarantee ;-)
Note
Both pairs made the 5th leg to the bottom of the pennant and completed that cycle. If we do get a bounce here, we may expect a break out of the pennant to the upside
Note
Both pairs broke out, looks like an impulsive move and now correcting a bit.As long as we can stay above the pennant, we're good
Note
Set up got invalidated by recent break down the break out didn't continue and didn't show a chance to enter. I was already stopped out the day before with SL on entry, didn't want to take a lot of risk.
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