Bitcoin and Ethereum Are Not Tipping Their Hands Yet

Journalist:
November 8, 2016

As these words are being typed, it seems Bitcoin wants to rally and ethereum is looking weak.  This proves the wisdom of waiting for confirmation before executing a trade.  Readers of yesterday’s column will recall that I ended by saying I was prepared to buy ethereum and/or ethxbt, but suggested I would wait for confirmation.  As of now that confirmation has still not come.

In fact, there are few concrete signals (that I can see) to indicate which way these currencies are going to break, so I for one will wait on the sidelines until a trend asserts itself.

What might constitute a CLEAR AND UNAMBIGUOUS SIGNAL? In bitcoin’s case a close above 750 would be strong evidence that the next leg of a rally was underway.  But for those not willing to wait that long, a close above the 1×1 (blue line highlighted by blue arrow) in this 2-hour chart would be an indication that a sustainable rally might be in the works.

Will we get that close? I have no way to know for sure.  The only thing I know for sure is that this chart’s trading since the low is very choppy and looks far more like a corrective wave to me, than an impulse wave.  So I am not yet willing to buy it.

Ethereum

Meanwhile, ethereum’s daily chart has not changed appreciably since last night’s article.  Price is still trapped under the weight of the 1×1 angle from the high (45 degrees) and the 2nd arc of the 4th arc pair.  I continue to suspect that it will be a bullish time when price breaks through those resistances, but I don’t know if that will happen today or next week.  So I will watch and wait on this one also.

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.

Image from Shutterstock.

Jim Fredrickson @jimfred1276

Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.