It is appearing more and more like most of the more popular cryptocoins are setting up for something exciting in the not-distant future. Let’s take a look at the daily chart of ethereum:
However, I have witnessed on many occasions when an asset traded flat to slightly higher, fighting for every gain it could get, until it reached the 5th arc. Then, once it finally passed through the 5th arc pair the price rose violently. This was the case in October 2013 in the days/weeks prior to the great bitcoin bull market of that time. So, knowing how much this chart looks like that infamous chart, I would be very hesitant to go short at the 5th arc. I might close long positions “just in case”, but remain ready to buy them back again quickly.
Lets look at another bull setup from the recent low, where we see that price has moved into the 2nd arc pair. Price rallied as soon as it entered the pair, but pulled back to test arc support.
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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Last modified: March 4, 2021 4:51 PM