Bitcoin continues to show strength as it is continuing to test the recent $750 high as these words are being typed. Nothing has changed in terms of targets from what was written in this column yesterday. Namely, resistance lies in wait ~ $810, but that resistance will likely yield. Stiffer resistance will likely be seen at ~ $855.
Ethereum
Ethereum continues to disappoint expectations. As these words are being written, ethereum’s daily chart continues to be confounded by the 2nd arc of the 3rd pair.
Price was knocked down hard by the 2nd arc pair (1st arrow), and turned down violently at the end of the 2nd square. It then meandered sideways until it hit the 3rd arc pair. Ever since price hit that pair back in the beginning of October, the pair has bedevilled the asset. Finally, after more than 5 weeks of falling prices, price rose again to meet and test the resisting arc. I had hoped it would break through. But it turned down and has fallen every time it touched that arc for the past 3 days.
The coin should find support soon ~ $9.10. But I don’t suggest buying it until we see a convincing close on the sunny side of the arc that has stopped it for over 5 weeks now. Far better, imho, to buy a bit higher with confirmation, than get a better price of a coin which has not yet stopped falling. That is, of course, just my opinion. Your mileage may vary.
Anyways, imho, Bitcoin is a far better long trade right now than ethereum is.
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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