Bitcoin
Bitcoin surprised me this morning with a strong push through resistance on multiple timeframes. As you can see on the daily chart below, price has pushed significantly past the 1st arc on the setup from the 750 low (see red arrow). While technically this is not a buy signal until we have a close above the arc, it seems highly likely that we will be given a buy signal on the daily chart in 16 hours or so.This does not necessarily mean that the correction is over. However, it means that there is a good chance that price will rally to the 2nd arc within the next day or two (or three). That puts the target at around $930 on the daily chart (blue arrow). Shorter-term traders will of course have profit targets lower than that, depending upon their timeframes.
The 8-hour chart shows price trying to get through resistance at the 2nd arc as these words are being typed.Assuming that the 2nd arc pair is conquered, the 3rd arc will be the target. As on the daily chart, this will suggest resistance in the $925-$930 area.
I am tempted to speculate what might happen at that point, but there is no use in getting that far ahead of ourselves. Let’s see what happens when we get to the resistance points already identified.
Ethereum
Ethereum is still struggling with the same arc of resistance that has frustrated bulls for many weeks now. As these words are being typed, price is challenging the arc yet again. Price briefly penetrated the arc before falling back below. I note that the .618 support line of an Andrews Pitchfork (red arrow) has supported this market since Jan 5. My guess is that it will do so again, and we should get a close above that stubborn arc in the very near future, giving us our first buy signal in quite a while. If so, resistance at the 4th arc is in the $11.50 area.
We will see…
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.
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