Bitcoin Long Term Chart
The long term bullish view remain unchanged but we were looking for the correction to end. I have relabelled the chart as it appears we are tracing out a longer term corrective triangle. Lets look to the short term chart to see how far along the triangle we are.
Bitcoin Short Term Chart
Last time we said ‘the correction seems to be still unfolding and despite already trading up to 88185, enabling us to get short. I am happy to stay short and add on a new high towards the 90400 level. I will look to start buying just above 70k with a move below 58700 closing longs and reassessing the view. If short stop and reverse on a move above 95k.’
We traded to 88785 before the sell off we were looking for got underway. If correct then we should see a correction towards the 84200-85000 level to complete the triangle. Then a thrust lower certainly to test 75k but I would not be surprised to see spike towards the 70k level before a sharp reversal and the resumption of the longer term up trend.
Ethereum Long Term Chart
Looking at the Eth log long term chart we need to break as a minimum target the low from this month at 1756. I am not seeing any indication of a low so look to start buying ETH on a test of the 1643 76.4% retracement level.
Ethereum Short Term Chart
Last time we said ‘I must admit to being slightly lost on ETH but given we have reached the resistance on the topside and the bearish divergence in the MACD I am still on the look out for a final push lower. A move above 2270 will negate the bearish view and confirm the correction has ended.’ As you can see we traded lower and given the divergence on the MACD I am expecting to see a turn around any moment. Given we are currently trading at 1810 the 1650 level seems quite far away so I would start buying at 1720-30 down to 1643 or on a break above 1920 which will confirm ETH is trading higher.
