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Crypto Forecast

Published 06/04/2021, 06:14 AM
Updated 07/09/2023, 06:31 AM

Bitcoin appears to be forming a bear flag. This means we are consolidating in the short term bear trend and are likely to break lower for a sell signal. We failed a break above trend line resistance so bears appear to remain in control.

Ripple (XRP) has failed at important 38.2% Fibonacci and short term moving average resistance at 1.0515/1.0545 all this week to leave a more negative outlook for today.

Shorts need stops above 1.1100.

Ethereum still holding strong resistance at 2750/2800 all this week to leave a more negative outlook for today. A break above 2850 is a buy signal.

Today’s Analysis

Bitcoin in a bear flag from support at 34800/500 up to what should be key resistance at 38500/39500 today. A break above 4000 is a buy signal but only targets 200 day moving average resistance at 41500/42500. Try shorts here, stop above 43500.

Very minor support at 37000 but below here can target is a short term sell signal targeting 35500/300. A break below 35000 is a sell signal targeting 3500, perhaps as far as 31100/3000. Although I had us buying here last time, this time it is more likely we will break lower to my ultimate target for the head and shoulders sell signal at 27500/27000.

Ripple shorts at strong resistance at 1.0515/1.0545 re-target 0.9400/9300. On further losses look for 0.9000/0.8980 and 0.8050/30. Again expect very important 6 month trend line and 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.

We are testing important 38.2% Fibonacci and short term moving average resistance at 1.0515/1.0545. Shorts need stops above 1.1100. A break higher is a buy signal targeting 1.1700/1.1800, perhaps as far as 1.3000/1.3500.

Ethereum shorts at strong resistance at 2750/2800 need stops above 2850. A break higher is a buy signal targeting 3050/3100, perhaps as far as strong resistance at 3300/3400. Shorts need stops above 3500.

Holding first resistance at 2750/2800 re-targets 2550/2500, perhaps as far as minor support at 2380/2350. If we continue lower in the 3 week bear trend, look for 2140/30 before a retest of important 61.8% Fibonacci support at 1728.

Disclaimer: No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realised. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.

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