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.
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.
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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