Bitcoin – If you have followed me on social media since May 11 you will know that I predicted the crypto crash, after spotting a 2 month head and shoulders reversal pattern, which completed on May 17 for a clear sell signal.
I also suggested longs at 31100/30000. We bottomed exactly at and shot higher to first resistance at 37000/38000 for an easy 7000 ticks profit.
Ripple XRP shorts at 38.2% Fibonacci and short term moving average resistance at 1.0515/1.0545 worked perfectly on the sell off to the first target of 0.9000/0.8970.
Another profit of over 100 pips.
Ethereum longs at the 1730 area worked perfectly on the 1000 tick (or 58%) rally to strong resistance at 2750/2800. We topped exactly here yesterday and shorts at 2750/2800 worked perfectly as we sold off to the first support at 2400/2350. We bottomed exactly here and longs worked on the bounce back to 2750/2800 for a another 700 pips yesterday.
A total potential profit of 1700 pips already this week.
Today’s Analysis
Bitcoin shot higher to first resistance at 37000/38000 and is the main challenge for bulls today. However we also have 200 day moving average resistance at 40500/800.
A break above 41000 is a buy signal targeting the head & shoulders neckline at 43600/43800. Shorts need stops above 44000.
We should now be on the way to 200 day moving average resistance at 40500/800. Holding here targets 38800/700, perhaps as far as support at 37100/37000. Longs need stops below 36500. Further losses risk a slide to 35500 & a retest of strong support at 31100/30000, just above my ultimate target for the head and shoulders sell signal at 27500/27000.
Brave bulls can try longs again at 31100/30000 but be aware that my ultimate target for the crash was 27500/27000. So save some funds to add to longs here. However longs need stops below 25500. A break lower signals significant further losses are likely.
Ripple retests important 38.2% Fibonacci & short term moving average resistance at 1.0515/1.0545. Shorts need stops above 1.1400. A break higher is a buy signal targeting 1.1700/1.1800, perhaps as far as 1.3000/1.3500.
Shorts at strong resistance at 1.0515/1.0545 re-target 0.9000/0.8970, perhaps as far as 0.8050/30. Again expect very important 6 month trend line & 200 day moving average support at 0.7040-0.6558 to hold the downside. Brave bulls or longer term investors can try longs with stops below 0.6400. If prices hold below here then all is lost for the bulls & a further significant correction to the downside looks likely.
Initially we can target 0.5100 – 0.4800.
Ethereum making a break above strong resistance at 2750/2800 this morning for another buy signal targeting first resistance at 3050/3100, perhaps as far as strong resistance at 3300/3400. Shorts need stops above 3500.
Longs at first support at 2800/2750 need stops below 2700. Support again at 2400/2350. A low for the day is certainly possible again but longs need stops below 2300. A break lower targets 2140/30 before a retest of important 61.8% Fibonacci support at 1728. Brave bulls can try longs here again and can also average down, buying a little more at the 200 day moving average at 1600. It is entirely possible that this will be the low for the crash. Longs MUST stop below 1500. A break lower to kills the recovery hopes and risks a slide to to 1300/1250. Although the decline may pause here I do not see this as a strong support level and longs would be extremely risky.
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