Bitcoin fumbled a bit yesterday, but did not suffer any damage, as hypothesized in yesterday’s post. If we get a close above the 1×1, which seems likely, then the next minimum target will be in the $1340+ area. More significant resistance will be seen in the $1420, $1530 and $1714 areas.
Ethereum responded exactly as was forecasted in yesterday’s post. We suggested shorting at $20 with a stop loss just over $21. Price went to $20.5 (on Kraken), then quickly fell $3.75 to $16.75. A very nice trade indeed. I hope you all enjoyed the party.
The asset has recovered nicely though, so it appears that it is time to again look at the long trade. There will be resistance at the top of the setup, just above $21 (also happens to be the ATH), so it might be wise to wait until we have a close above the ATH if you are concerned that another leg down might be lurking. We are almost at the point of 90 degrees having elapsed (blue vertical line) since the start of the current rally, so caution is warranted.
However, when/if price has overcome that resistance, $23 will be the next minimum target, with $24 being a bit more likely.
Having said that, for longer-term traders, not leveraged and willing/able to invest-and-forget , it is quite likely that ETH will hit prices currently seen by her altcoin siblings by mid-summer.
A longer-term look at the ETHUSD chart shows 3rd, 4th and 5th square highs at $45, $60, and $75 respectively. Given the prevailing climate where cryptocurrencies are finally beginning to get the attention they so rightly deserve, it is quite likely those levels will be hit, far sooner than currently seems possible. Indeed, the 1×1 Gann angle from the start of the ETH chart intersects the top of the 5th square at $75 on Aug 26, 2017 (blue arrow). Possible? I think so.
Even more interesting for the esoteric-minded and aware, that August date marks 540 degrees, (360+180) from the first swing high of $15 on 3/15/2016, and the end of a square in time. The start of the current rally, from the $6 low (red arrow), will have come at the exact midpoint of those two dates. Hhhmmm………..
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.